how to calculate depreciation expense under double declining balance method in excel
DDB(cost, salvage, life, period, [factor])
The DDB function syntax has the following arguments:
Cost Required. The initial cost of the asset.
Salvage Required. The value at the end of the depreciation (sometimes called the salvage value of the asset). This value can be 0.
Life Required. The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).
Period Required. The period for which you want to calculate the depreciation. A period must use the same units as life.
Factor Optional. The rate at which the balance declines. If the factor is omitted, it is assumed to be 2 (the double-declining balance method).
he 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:
Min( (cost - total depreciation from prior periods) * (factor/life), (cost - salvage - total depreciation from prior periods) )
Change factor if you do not want to use the double-declining balance method.
Use the VDB function if you want to switch to the straight-line depreciation method when depreciation is greater than the declining balance calculation.
