Fresh Excel Tips

The DDB function returns the depreciation of an asset for a specified period, using the double-declining balance method or some other method that can be specified.
DDB(cost, salvage, life, period, factor)
cost: The asset’s initial cost.
salvage: The value of the asset at the end of the depreciation.
life: The number of periods over which the asset is being depreciated.
period: The period for which the depreciation is being calculated.
factor: The rate at which the balance declines. If factor is omitted, it is assumed to be 2, which specifies the double-declining balance method.

To use the double-declining balance method:

1. Enter the initial cost in cell B1, the number of periods in cell B2, and the salvage in cell B3.
2. Calculate the depreciation in the fifth year in cell B4 with the following formula: =DDB($B$1,$B$3,$B$2,5).
3. To calculate the depreciation after one day, type this formula in cell B5: =DDB($B$1,$B$3,$B$2*365,1).
4. To calculate the depreciation after the first month, use this formula in cell B6: =DDB($B$1,$B$3,$B$2*12,1).

This tip is compatible with Excel 97, 2000, 2003 and 2007.

1. How to Use the SYD function to calculate depreciation in Excel
2. How to Use the SLN function to calculate straight-line depreciation
3. How to Use the FV function to calculate total savings account balance
4. How to Use the RATE function to calculate interest rate in Excel
5. Use the DAYS360 function to calculate with a 360-day year