# DDB

Returns the depreciation of an asset for a specified period using the double-declining balance method or some other method you specify.

**Syntax**

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

**Cost** is the initial cost of the asset.

**Salvage** is the value at the end of the depreciation (sometimes called the salvage value of the asset).

**Life** is the number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).

Period is the period for which you want to calculate the depreciation. Period must use the same units as life.

Factor is the rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method).

All five arguments must be positive numbers.

**Remarks**

The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. DDB uses the following formula to calculate depreciation for a period:

cost - salvage(total depreciation from prior periods) _{* }factor / life

Change factor if you do not want to use the double-declining balance method.

**Examples**

Suppose a factory purchases a new machine. The machine costs $2,400 and has a lifetime of 10 years. The salvage value of the machine is $300. The following examples show depreciation over several periods. The results are rounded to two decimal places.

`DDB(2400,300,3650,1)`

equals $1.32, the first day's depreciation. Microsoft Excel automatically assumes that factor is 2.

`DDB(2400,300,120,1,2)`

equals $40.00, the first month's depreciation.

`DDB(2400,300,10,1,2)`

equals $480.00, the first year's depreciation.

`DDB(2400,300,10,2,1.5)`

equals $306.00, the second year's depreciation using a factor of 1.5 instead of the double-declining balance method.

`DDB(2400,300,10,10)`

equals $22.12, the 10th year's depreciation. Microsoft Excel automatically assumes that factor is 2.