Manuals/calci/DB

DB (Cost,Salvage,Life,Period,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(), returns the depreciation of an asset for a specified period by using the fixed-declining balance method.

Description

DB (Cost,Salvage,Life,Period,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

See Also

References