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Advanced Excel Financial - DB Function
Description
The DB function returns the depreciation of an asset for a specified period using the fixeddeclining balance method.
Syntax
DB (cost, salvage, life, period, [month])
Arguments
Argument | Description | Required/ Optional |
---|---|---|
Cost | The initial cost of the asset. | Required |
Salvage | The value at the end of the depreciation (sometimes called the salvage value of the asset). | Required |
Life | The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset). | Required |
Period | The period for which you want to calculate the depreciation. Period must use the same units as life. |
Required |
Month | The number of months in the first year. If month is omitted, it is assumed to be 12. |
Optional |
Notes
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
If the specified cost or the specified salvage argument is < 0, DB returns #NUM! error value.
If the specified life or the specified period argument is ≤ 0, DB returns #NUM! error value.
If the specified month argument is ≤ 0 or is > 12, DB returns #NUM! error value.
If the specified period > life and the month argument is omitted, DB returns #NUM! error value.
If the specified period > life+1, DB returns #NUM! error value.
If any of the specified arguments is not a numeric value, DB returns #VALUE! error value.
Applicability
Excel 2007, Excel 2010, Excel 2013, Excel 2016