DDB Function

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Syntax

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

cost

Use: Required

Data Type: Double

The initial cost of the asset.

salvage

Use: Required

Data Type: Double

The value of the asset at the end of life.

life

Use: Required

Data Type: Double

Length of life of the asset.

period

Use: Required

Data Type: Double

Period for which the depreciation is to be calculated.

factor

Use: Optional

Data Type: Variant

The rate at which the asset balance declines. If omitted, 2 (double-declining method) is assumed. However, the documentation doesn't mention what other values are supported or what they mean.

Return Value

Double representing the depreciation of an asset.

Description

Returns a Double representing the depreciation of an asset for a specific time period using the double-declining balance method or another method you specify using the factor argument. The double-declining balance calculates depreciation at an differential rate that varies inversely with the age of the asset. Depreciation is highest at the beginning of the life of an asset and declines over time.

Rules at a Glance

• life and period must be specified in the same time units. In other words, both must be expressed in units of months, or both must be years.

• All arguments must be positive numbers.

Example

Dim dblInitialCost As Double
Dim dblSalvageValue As Double
Dim dblUsefulLife As Double
Dim dblPeriod As Double
Dim dblThisPeriodDepr As Double
Dim dblTotDepreciation As Double

dblInitialCost = 2000
dblSalvageValue = 50
dblUsefulLife = 12
dblTotDepreciation = 0

For dblPeriod = 1 To 12
    dblThisPeriodDepr = DDB(dblInitialCost, _
                 dblSalvageValue, dblUsefulLife, dblPeriod)
    dblTotDepreciation = dblTotDepreciation + _
                         dblThisPeriodDepr
    Debug.Print "Month " & dblPeriod & ": " & _
                dblThisPeriodDepr
Next dblPeriod

Debug.Print "TOTAL: " & dblTotDepreciation

Programming Tips and Gotchas

• The double-declining balance depreciation method calculates depreciation at a higher rate in the initial period and decreases in subsequent periods.

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

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

  
  

See Also

A psychiatrist!