How to use DDB Function in Excel

The Excel DDB function returns the depreciation of an asset for a given period using the double-declining balance method or another method you specify by changing the factor argument

Syntax:= 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).

Example: Let’s look at some Excel DDB function examples and explore how to use the DDB function as a worksheet function in Microsoft Excel:

DDB Function - How to use DDB Function in Excel

Syntax:  =DDB(B1,B2,B3*365,1)

Result:

DDB Function in Excel 1 - How to use DDB Function in Excel

Based on the Excel spreadsheet above, the following DDB examples would return:

Syntax: =DDB(B1,B2,B3*12,1,2)
Result: $520.83

Syntax: =DDB(B1,B2,B3,1,2)
Result: $6,250.00

Syntax: =DDB(B1,B2,B3,2,2)
Result: $4,687.50

Syntax: =DDB(B1,B2,B3,3,2)
Result: $3,515.63

Syntax: =DDB(B1,B2,B3,4,2)
Result: $2,636.72

Syntax: =DDB(B1,B2,B3,5,2)
Result: $1,977.54

Syntax: =DDB(B1,B2,B3,6,2)
Result: $1,483.15

Syntax: =DDB(B1,B2,B3,7,2)
Result: $1,112.37

Syntax: =DDB(B1,B2,B3,8,2)
Result: $834.27 

Note:

  1. The function generates #VALUE! Error if arguments to the function is non – numeric
  2. The function generates #NUM! Error if:
  • The value of cost and salvage is less than 0.
  • The value of life of asset is less than or equals to zero.
  • The period argument is less than or equals to 0 or greater than life period.
  • The factor argument is less than 1.
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