**Using the Excel DDB Function**

## 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