VDB function

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

Description

Returns the depreciation of an asset for any period you specify, including partial periods, using the double-declining balance method or some other method you specify. VDB stands for variable declining balance.

Syntax

VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])

The VDB 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 depreciated (sometimes called the useful life of the asset).

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

  • End_period    Required. The ending period for which you want to calculate the depreciation. End_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). Change factor if you do not want to use the double-declining balance method. For a description of the double-declining balance method, see DDB.

  • No_switch    Optional. A logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation.

    • If no_switch is TRUE, Microsoft Excel does not switch to straight-line depreciation even when the depreciation is greater than the declining balance calculation.

    • If no_switch is FALSE or omitted, Excel switches to straight-line depreciation when depreciation is greater than the declining balance calculation.

Important   All arguments except no_switch must be positive numbers.

Example

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.

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A

B

Data

Description

2400

Initial cost

300

Salvage value

10

Lifetime in years

Formula

Description (Result)

=VDB(A2, A3, A4*365, 0, 1)

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

=VDB(A2, A3, A4*12, 0, 1)

First month's depreciation (40.00)

=VDB(A2, A3, A4, 0, 1)

First year's depreciation (480.00)

=VDB(A2, A3, A4*12, 6, 18)

Depreciation between the sixth month and the eighteenth month (396.31)

=VDB(A2, A3, A4*12, 6, 18, 1.5)

Depreciation between the sixth month and the eighteenth month using a factor of 1.5 instead of the double-declining balance method (311.81)

=VDB(A2, A3, A4, 0, 0.875, 1.5)

Depreciation for the first fiscal year that you own the asset, assuming that tax laws limit you to 150-percent depreciation of the declining balance. Asset is purchased in the middle of the first quarter of the fiscal year. (315.00)

Note   The results are rounded to two decimal places.

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



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