Manuals/calci/DDB

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DDB (Cost,Salvage,Life,Period,Factor)


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
  • is the rate factor at which the balance declines.
    • DDB(), returns the depreciation of an asset for a specified period by using the double-declining balance method or some other method that you specify.

Description

DDB (Cost,Salvage,Life,Period,Factor)

  • Depreciation is the decrease in value of assets. Depreciation of an asset is highest in the first period and decreases in successive periods.
  • DDB() calculates the depreciation using the double-declining balance method.
  • If   <0, Calci displays #N/A error message.
  • If   , ,  ,   <=0, Calci displays #N/A error message.
  • Argument   is optional. If omitted, Calci assumes it to be 2 (double-declining balance method).
  • If   is not an integer, Calci rounds up the value (e.g. 4.2 is rounded up to 5).

Examples

Consider the following example that shows the use of DDB function:

200,000 10,000
1000 100
5 10
1 1
1.5
=DDB(A1,A2,A3,A4) : Calculates the depreciation for the values in the range A1 to A4. 
'F' is assumed to be 2.
Displays 80000 as a result. =DDB(A1,A2,A3,A4,A5) : Calculates the depreciation for the values in the range A1 to A5.
Displays 60000 as a result. =DDB(B1,B2,B3,B4) : Calculates the depreciation for the values in the range B1 to B4.
'F' is assumed to be 2. Displays 2000 as a result. =DDB(20000,2000,5,4.5,2) : Displays 1338.5030444492834 as a result.

Related Videos

Double Declining Balance Method

See Also

References