This function calculates the depreciation of an asset for a specified period using the fixed‑declining balance method.
DB(cost, salvage, life, period, month)
This function has these arguments:
Initial cost of the asset
Value at the end of the depreciation period
Number of periods over which the asset is being depreciated
Period for which you want to calculate the depreciation; use the same units as the life argument
[Optional] Number of months in the first year; if omitted, the calculation uses 12 months
The fixed-declining balance method computes depreciation at a fixed rate. This function uses the following equation to calculate depreciation for a period:
(cost – total depreciation from prior periods) x rate
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, the function uses this equation:
dep = cost x rate x month/12
For the last period, the function uses this equation:
dep = ((cost – total dep. from prior periods) x rate x (12 – month))/12.
Accepts numeric data for all arguments. Returns numeric data.
DB(500000,5000,5,1,10) gives the result of $25,0833.3333333333.