DDB function

This article describes the formula syntax and usage of the DDBfunction in Microsoft Excel.


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


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

The DDB function syntax has the following arguments:

  • Cost    Required. The initial cost of the asset.

  • Salvage    Required. The value at the end of the depreciation (sometimes called the salvage value of the asset). This value can be 0.

  • Life    Required. The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).

  • Period    Required. The period for which you want to calculate the depreciation. Period must use the same units as life.

  • Factor    Optional. The rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method).

Important   All five arguments must be positive numbers.


  • The double-declining balance method computes depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. DDB uses the following formula to calculate depreciation for a period:

Min( (cost - total depreciation from prior periods) * (factor/life), (cost - salvage - total depreciation from prior periods) )

  • Change factor if you do not want to use the double-declining balance method.

  • Use the VDB function if you want to switch to the straight-line depreciation method when depreciation is greater than the declining balance calculation.


The example may be easier to understand if you copy it to a blank worksheet.

How do I copy an example?

  1. Select the example in this article.

    Important   Do not select the row or column headers.

    selecting an example from help

    Selecting an example from Help

  2. Press CTRL+C.

  3. In Excel, create a blank workbook or worksheet.

  4. In the worksheet, select cell A1, and press CTRL+V.

    Important   For the example to work properly, you must paste it into cell A1 of the worksheet.

  5. To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.

After you copy the example to a blank worksheet, you can adapt it to suit your needs.
















Initial cost


Salvage value


Lifetime in years


Description (Result)


First day's depreciation. Microsoft Excel automatically assumes that factor is 2. (1.32)


First month's depreciation (40.00)


First year's depreciation (480.00)


Second year's depreciation using a factor of 1.5 instead of the double-declining balance method (306.00)


Tenth year's depreciation. Microsoft Excel automatically assumes that factor is 2 (22.12)

Note   The results are rounded to two decimal places.

Applies To: Excel 2010, Excel Starter, Excel Online, SharePoint Online

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