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Financial function
DDB
Returns double-declining-balance depreciation for a period.
OccasionalDifficulty 1350 · AdvancedUsage rank #209 of 520
When to use it
Double-declining-balance depreciation: twice the straight-line rate applied to book value, or another factor if you choose.
The shape of it
- Syntax
=DDB(cost, salvage, life, period, [factor])
Worked examples
First year
=DDB(2400,300,10,1) → 480
Year one: 2,400 × 2/10.
Second year
=DDB(2400,300,10,2) → 384
Year two on the remaining 1,920.
Custom factor
=DDB(2400,300,10,1,1.5) → 360
A 150% declining balance.
Worth knowing
- DDB never switches to straight line, so late years may under-depreciate; VDB switches automatically.
- It stops at salvage value.
- Monthly periods work if life is in months.
Where it goes wrong
- Total depreciation may not reach cost minus salvage.
- #NUM! for negative inputs.
Related
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