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=DB()
Returns the depreciation of an asset for a specified period using the fixed-declining balance method.
Applies To:
Excel for Microsoft 365Excel for Microsoft 365 for MacExcel 2024Excel 2024 for MacExcel 2021Excel 2021 for MacExcel 2019Excel 2016
=DB(cost, salvage, life, period, [month])
Hover argument names in the table for details.
Output typeNumber
Popularity30 / 100
VolatileNo
Dynamic ArrayNo
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◧ Arguments
| Argument | Type | Required | Description |
|---|---|---|---|
cost |
Number | Required | The initial cost of the asset. |
salvage |
Number | Required | The value at the end of the depreciation (sometimes called the salvage value of the asset). |
life |
Number | Required | The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset). |
period |
Number | Required | The period for which you want to calculate the depreciation. Period must use the same units as life. |
month |
Number | Optional | The number of months in the first year. If month is omitted, it is assumed to be 12. |
▣ Examples
▦ Data
| Cell | Value | Description |
|---|---|---|
A2 |
$1,000,000 | Initial cost |
A3 |
$100,000 | Salvage value |
A4 |
6 | Lifetime in years |
A5 |
$1,000,000 | Initial cost |
A6 |
$100,000 | Salvage value |
A7 |
6 | Lifetime in years |
Depreciation in first year, with only 7 months calculated
=DB(A2,A3,A4,1,7)
Result:
$186,083.33
Depreciation in second year
=DB(A2,A3,A4,2,7)
Result:
$259,639.42
Depreciation in third year
=DB(A2,A3,A4,3,7)
Result:
$176,814.44
Depreciation in fourth year
=DB(A2,A3,A4,4,7)
Result:
$120,410.64
Depreciation in fifth year
=DB(A2,A3,A4,5,7)
Result:
$81,999.64
Depreciation in sixth year
=DB(A2,A3,A4,6,7)
Result:
$55,841.76
Depreciation in seventh year, with only 5 months calculated
=DB(A2,A3,A4,7,7)
Result:
$15,845.10
§ Remarks
- The fixed-declining balance method computes depreciation at a fixed rate. DB uses the following formulas to calculate depreciation for a period: (cost - total depreciation from prior periods) * rate where: rate = 1 - ((salvage / cost) ^ (1 / life)), rounded to three decimal places
- Depreciation for the first and last periods is a special case. For the first period, DB uses this formula: cost * rate * month / 12
- For the last period, DB uses this formula: ((cost - total depreciation from prior periods) * rate * (12 - month)) / 12
✦ Tips
- The fixed-declining balance method computes depreciation at a fixed rate. DB uses the following formulas to calculate depreciation for a period: (cost - total depreciation from prior periods) * rate where: rate = 1 - ((salvage / cost) ^ (1 / life)), rounded to three decimal places
- Depreciation for the first and last periods is a special case. For the first period, DB uses this formula: cost * rate * month / 12
- For the last period, DB uses this formula: ((cost - total depreciation from prior periods) * rate * (12 - month)) / 12
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