DDB Function Explained
The DDB Function in Microsoft Excel is used to calculate the Declining Balance Depreciation of an asset over a specified period of time. It takes four arguments: cost, salvage, life, and period. The cost is the initial cost of the asset, the salvage is the value of the asset at the end of its useful life, the life is the number of periods over which the asset is being depreciated, and the period is the period for which the depreciation is being calculated. The function returns the depreciation amount for the specified period.
DDB Function Syntax
DDB(cost, salvage, life, period, [factor])
- 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.
- period: The period for which you want to calculate the depreciation.
- factor: (Optional) The rate at which the balance declines. If omitted, it is assumed to be 2.