# DDB

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Returns the depreciation of an asset for a specified period using the double-declining balance method or some other method you specify.

**Syntax**

*DDB* ( *cost* , *salvage* , *life* , *period* ,factor)

**Cost** is the initial cost of the asset.

**Salvage** is the value at the end of the depreciation (sometimes called the salvage value of the asset).

**Life** is the number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).

**Period** is the period for which you want to calculate the depreciation. Period must use the same units as life.

**Factor** is the rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method).

All five arguments must be positive numbers.

*Remarks*

The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. DDB uses the following formula to calculate depreciation for a period:

((cost-salvage) - total depreciation from prior periods) * (factor/life)

Change factor if you do not want to use the double-declining balance method.

*Example*

Cost |
Salvage |
Life |
Formula |
Description (Result) |
---|---|---|---|---|

2400 |
300 |
10 |
=DDB([Cost],[Salvage],[Life]*365,1) |
First day's depreciation. Factor is automatically assumed to be 2. (1.32) |

2400 |
300 |
10 |
=DDB([Cost],[Salvage],[Life]*12,1,2) |
First month's depreciation (40.00) |

2400 |
300 |
10 |
=DDB([Cost],[Salvage],[Life],1,2) |
First year's depreciation (480.00) |

2400 |
300 |
10 |
=DDB([Cost],[Salvage],[Life],2,1.5) |
Second year's depreciation using a factor of 1.5 instead of the double-declining balance method (306.00) |

2400 |
300 |
10 |
=DDB([Cost],[Salvage],[Life],10) |
Tenth year's depreciation. Factor is automatically assumed to be 2 (22.12) |

**Note:** The results are rounded to two decimal places.