Advanced Excel Financial - DB Function

Description

The DB function returns the depreciation of an asset for a specified period using the fixeddeclining balance method.

DB (cost, salvage, life, period, [month])

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

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.

Excel 2007, Excel 2010, Excel 2013, Excel 2016

advanced_excel_financial_functions.htm