The Business Ways

Making financial forecasts or performing investment analyses that need to include depreciation? Microsoft Excel can help. Excel’s DB, or declining balance, depreciation function lets you calculate fixed-declining balance depreciation.

The DB function calculates fixed declining balance depreciation for an asset given the cost, it’s salvage value, estimated economic life, the accounting period for which depreciation is being calculated, and, optionally, the number of month in first year. (If you don’t include the optional month argument, Excel sets this value to 12.) The DB function uses the following syntax:

DB (cost, salvage, life, period, month)

Share This

Making financial forecasts or performing investment analyses that needs to include double declining balance depreciation? Microsoft Excel can help. Excel’s DDB, or double declining balance, depreciation function lets you calculate 200% declining balance depreciation.

The DDB function calculates double-declining balance depreciation for an asset given the cost, its salvage value, estimated economic life, the accounting period for which depreciation is being calculated, and, optionally, the factor at which the balance declines. (If you don’t include the optional factor argument, Excel sets this value to 2 indicating “double? declining balance.) The DDB function uses the following syntax:

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

Share This