DDB – Double Declining Balance method of depreciation
Syntax:
=DDB(cost,salvage,life,period,[factor])
cost: cost of the asset
salvage: residual value of asset at the end of its useful life
life: useful life of asset
period: accounting period for which depreciation is to be calculated
factor (optional): depreciation coefficient by which you want depreciation to accelerate. It can be any number. If omitted Excel assumes the factor/coefficient of 2.
Example
Step 1: Open the tab named DDB and observe the data provided.
Step 2: In cell B13 put this formula: =DDB(B7,B8,B9,B10,B11) and hit enter. It will be give you depreciation expense with double declining balance method on the basis of data provided.
Following is a live worksheet where you can make changes and see the resulting effect
