How to use VDB Function in Excel

The Excel VDB function returns the depreciation of an asset for given period, using the double-declining balance method or another method specified by changing the factor argument. By default, the VDB function will switch to straight line calculation. VDB stands for variable declining balance.

Syntax:= VDB (cost, salvage, life, start, end, [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.

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

VDB Function - How to use VDB Function in Excel

Syntax:  =VDB(B1,B2,B3*365,0,1)

Result:

VDB Function in Excel - How to use VDB Function in Excel

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

Syntax: =VDB(B1,B2,B3*12,0,1)
Result: $16,666.67

Syntax: =VDB(B1,B2,B3,0,1)
Result: $200,000.00

Syntax: =VDB(B1,B2,B3,1,4)
Result: $487,800.00

Syntax: =VDB(B1,B2,B3,2,6)
Result: $557,118.00

Syntax: =VDB(B1,B2,B3*12,3,9)
Result: $95,511.53

Syntax: =VDB(B1,B2,B3*12,6,10)
Result: $62,613.88

Syntax: =VDB(B1,B2,B3*12,6,18)
Result: $181,725.94

Syntax: =VDB(B1,B2,B3*12,6,18,1.5)
Result: $139,598.29

Syntax: =VDB(B1,B2,B3,0,0.875,1.5)
Result: $131,250.00

Note:

  1. We need to provide arguments “period” and “life” in the same units of time: years, months, or days.
  2. All arguments except no_switch must be positive numbers.
  3. #VALUE! error – Occurs when the given arguments are non-numeric.
  4. #NUM! error – Occurs when:
    • Any of the supplied cost, salvage, start_period, end_period or [factor] arguments are < 0;
    • The given life argument is less than or equal to zero;
    • The given start_period is > the given end_period; and
    • Start_period > life or end_period > life.

One Comment

  1. Sandeep June 18, 2020 Reply

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