DDB (double-declining balance depreciation)

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DDB (double-declining balance depreciation)

Syntax:

DDB(Cost, Salvage, Life, Per [, Factor])

Description:

Returns the depreciation of an asset for the specified period, using the double-declining balance method (or a variable-declining balance method, if Factor is specified).

Cost = Initial cost of asset

Salvage = Salvage value (value at the end of the depreciation)

Life = Life of asset (in number of periods)

Per = Period to evaluate (in the same time unit as Life)

Factor (optional) = Rate at which the balance declines (2 if omitted)

Example:

For a machine purchased for € 200,000 that is used for 10 years and then has a salvage value of € 10,000, the following annual depreciation amount must be applied for the first year:

DDB(200000, 10000, 10, 1) returns 40000

For the second year:

DDB(200000, 10000, 10, 2) returns 32000

etc.

See also:

DB, SYD, SLN