DDB Function in Google Sheets

Calculate depreciation of an asset using the double-declining balance method with the DDB function.

DDB Function

The DDB function in Google Sheets calculates the depreciation of an asset for a specific period using the double-declining balance method.

Syntax

DDB(cost, salvage, life, period, [factor])
  • cost: The initial cost of the asset. This is a required parameter.
  • salvage: The value of the asset at the end of its useful life. This is a required parameter.
  • life: The number of periods over which the asset will be depreciated. This is a required parameter.
  • period: The period for which you want to calculate the depreciation. This is a required parameter.
  • factor: (Optional) The rate at which the balance declines. If omitted, the default value is 2 (double-declining).

Examples

  1. Basic Depreciation Calculation

Calculate the depreciation of an asset costing $10,000 with a salvage value of $1,000 over 5 years for the second year:

= DDB(10000, 1000, 5, 2)

This will output 3,200.

Notes

  • The DDB function assumes a faster depreciation rate in the earlier periods of the asset’s life.
  • The function allows for a custom factor to adjust the declining balance rate.
  • DB: Calculate depreciation using the fixed-declining balance method.
  • SLN: Calculate depreciation using the straight-line method.