## Summary

The Excel DDB function uses the double-declining balance method, or some other user specified method, to return the depreciation of an asset for a specified period.

To switch to the straight-line depreciation method when depreciation is greater than the declining balance, use the VDB function.

## Syntax

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

## Syntax Breakdown

Cost
Required. Initial cost of the asset.

Salvage
Required. Salvage value of the asset or the value at the end of the depreciation. This argument will accept 0 (zero) as a value.

Life
Required. The useful life of the asset, or the number of periods over which the asset is being depreciated.

Period
Required. Period for which you want to calculate the depreciation. Must be in the same unit as life.

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

## Usage Notes

DDB uses the double-declining balance method to calculate the depreciation of an asset for a given period of time. The double-declining method computes depreciation as an accelerate rate, with depreciation highest in the first period and decreasing each successive period. The following formula is used to compute the depreciation:

=MIN((cost - total prior depreciation) * (factor / life), (cost - salvage, total prior depreciation))

The function defaults to using 2 for the optional factor argument. This can be changed to use some other depreciation method.

Other Depreciation Functions
SYD Function: Sum-of-years depreciation method

DB Function: Fixed-declining balance depreciation method

SLN Function: Straight-line depreciation method

VDB Function: Variable declining balance depreciation method