VDB Function Explained
The VDB Function in Microsoft Excel is used to calculate the depreciation of an asset for a specified period using the double-declining balance method or some other method you specify. It takes five arguments: cost, salvage, life, start_period, and end_period. The cost argument is the initial cost of the asset, the salvage argument is the value of the asset at the end of its useful life, the life argument is the number of periods over which the asset is being depreciated, the start_period argument is the starting period for which you want to calculate the depreciation, and the end_period argument is the ending period for which you want to calculate the depreciation.
VDB Function Syntax
VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])
- cost: The initial cost of the asset.
- salvage: The value of the asset at the end of its useful life.
- life: The number of periods over which the asset is being depreciated.
- start_period: The period in which the asset is placed in service.
- end_period: The period in which the asset is fully depreciated.
- factor: (Optional) The rate at which the asset is depreciated. If omitted, the default value is 2.
- no_switch: (Optional) A logical value that specifies whether the depreciation switch is allowed. If omitted, the default value is FALSE.