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

Syntax

DDB(cost, salvage, life, period[, factor])

The DDB function has these named arguments:

Part Description
cost Required. Double specifying initial cost of the asset.
salvage Required. Double specifying value of the asset at the end of its useful life.
life Required. Double specifying length of useful life of the asset.
period Required. Double specifying period for which asset depreciation is calculated.
factor Optional. Variant specifying rate at which the balance declines. If omitted, 2 (double-declining method) is assumed.

Remarks

The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods.

The life and period arguments must be expressed in the same units. For example, if life is given in months, period must also be given in months. All arguments must be positive numbers.

The DDB function uses the following formula to calculate depreciation for a given period:

Depreciation / period = ((cost - salvage) * factor) / life

Example

This example uses the DDB function to return the depreciation of an asset for a specified period given the initial cost ( 

InitCost
), the salvage value at the end of the asset's useful life ( 
SalvageVal
), the total life of the asset in years ( 
LifeTime
), and the period in years for which the depreciation is calculated ( 
Depr
). 
Dim Fmt, InitCost, SalvageVal, MonthLife, LifeTime, DepYear, Depr Const YRMOS = 12 ' Number of months in a year. Fmt = "###,##0.00" InitCost = InputBox("What's the initial cost of the asset?") SalvageVal = InputBox("Enter the asset's value at end of its life.") MonthLife = InputBox("What's the asset's useful life in months?") Do While MonthLife < YRMOS ' Ensure period is >= 1 year. MsgBox "Asset life must be a year or more." MonthLife = InputBox("What's the asset's useful life in months?") Loop LifeTime = MonthLife / YRMOS ' Convert months to years. If LifeTime <> Int(MonthLife / YRMOS) Then LifeTime = Int(LifeTime + 1) ' Round up to nearest year. End If DepYear = CInt(InputBox("Enter year for depreciation calculation.")) Do While DepYear < 1 Or DepYear > LifeTime MsgBox "You must enter at least 1 but not more than " & LifeTime DepYear = InputBox("Enter year for depreciation calculation.") Loop Depr = DDB(InitCost, SalvageVal, LifeTime, DepYear) MsgBox "The depreciation for year " & DepYear & " is " & _ Format(Depr, Fmt) & "."