# DB(C, Salvage, L, P, NoMonths)

Where

• is the initial cost of an asset,
• is the value at the end of depreciation,
• is life of an asset that indicates the number of periods over which the asset is being depreciated,
• is the period for which depreciation is to be calculated, and
• specifies how many months of the year are used in the calculation of the first period of depreciation.

DB() calculates the depreciation of an asset for a specified period using the fixed-declining method.

## Description

DB(C, Salvage, L, P, NoMonths)

• Depreciation is the decrease in value of assets. Depreciation of an asset is highest in the first period and decreases in successive periods.
• DB() calculates the depreciation using the fixed-declining balance method.
• If <0, Calci displays #N/A error message.
• If , , , <=0, Calci displays #N/A error message.
• If is not an integer, Calci rounds up the value (e.g. 4.2 is rounded up to 5).

## Examples

1. =DB(20000,2000,5,4.5,2) : This example is used to find the yearly depreciation of an asset that costs \$20,000 at the start of year 4.5, and has a salvage value of \$2,000 after 5 years. The depreciation calculation starts 2 months into year 1.
Displays 2,757.7148 as a result.

2. =DB(10000,1000,5,1,6) : This example is used to find the yearly depreciation of an asset that costs \$10,000 at the start of year 1, and has a salvage value of \$1,000 after 5 years. The depreciation calculation starts 6 months into year 1.
Displays 1,845.00 as a result.

## Related Videos

Fixed Declining Balance Method