Author: Oscar Cronquist Article last updated on January 21, 2019

The DDB function calculates the depreciation of an asset for a given period using the double-declining balance method or based on user input.

Formula in cell F3:

=DDB($C$3,$C$4,$C$5,E3)

Excel Function Syntax

DDB(cost, salvage, life, period, [factor])

Arguments

Cost Required. What you pay for the asset.
Salvage Required. The value of the asset at the end of depreciation.
Life Required. The number of periods the asset is being depreciated.
Period Required. The period you want to know the depreciation of.
[factor] Optional. How quickly the balance declines, default value is 2 (the double-declining balance method).

Comments

Here is how the DDB function calculates the depreciation of a period:

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