This function calculates the depreciation of an asset for a specified period using the fixed‑declining balance method.

Syntax

DB(cost,salvage,life,period,month)

Arguments

This functions has these arguments:

Argument |
Description |

cost |
Initial cost of the asset |

salvage |
Value at the end of the depreciation period |

life |
Number of periods over which the asset is being depreciated |

period |
Period for which you want to calculate the depreciation; use the same units as the life argument |

month |
[Optional] Number of months in the first year; if omitted, the calculation uses 12 months |

Remarks

The fixed-declining balance method computes depreciation at a fixed rate. This function uses the following equation to calculate depreciation for a period:

(cost – total depreciation from prior periods) x rate

where:

rate = 1 – ((salvage/cost)^(1/life)), rounded to three decimal places

Depreciation for the first and last periods is a special case. For the first period, the function uses this equation:

dep = cost x rate x month/12

For the last period, the function uses this equation:

dep = ((cost – total dep. from prior periods) x rate x (12 – month))/12.

Data Types

Accepts numeric data for all arguments. Returns numeric data.

Examples

DB(B1,1000,10,1)

DB(R1C2,10000,10,1)

DB(500000,5000,5,1,10) gives the result $25,0833.3333333333

See Also