Buzz
The DDB function in Excel calculates asset depreciation over a defined period using either the double declining balance method or another method of your choosing. To better understand the syntax and usage of the DDB function, follow along with the article below.
You can use the DDB function across Office versions 2013, 2010, and 2007 as their interfaces are quite similar. However, the interface differs slightly in Office 2003.
How to Use DDB Function in Excel - Illustrated Examples
Syntax: DDB(cost, salvage, life, period, [factor])
Where:
- Cost: Initial cost of the product, required parameter
- Salvage: Value after depreciation (value recovered from the asset), required parameter
- Life: Number of depreciation periods, required parameter
- Period: Period for depreciation, required parameter
- Factor: Declining balance rate. If omitted, defaults to 2 (double-declining method)
Consider an Example:
Given the spreadsheet below, with data entered corresponding to the parameters of the DDB function in Excel.
Requirements:
- Calculate depreciation for the first month
- Calculate depreciation for the first year
- Calculate depreciation for the second year with a factor of 1.5
To calculate depreciation for the first month, enter the formula in cell C9 =DDB(C6,C7,C8*12,1,2). The result is as shown in the image below.
To calculate depreciation for the first year, enter the formula in cell C10 =DDB(C6,C7,C8,1,2). The result is as shown in the image below.
To calculate depreciation for the second year with a factor of 1.5, enter the formula in cell C11 =DDB(C6,C7,C8,2,1.5). The result is as shown in the image below.
Above, we have guided you on how to use the DDB function in Excel to calculate asset depreciation over a predetermined period.
After exploring the DDB function, let's delve into the STDEV.S function to further support your work. In the article about the STDEV.S function, detailed explanations are provided. Simply remember the syntax and understand the examples to apply it effectively in your tasks.
