fx
FunctionPedia
Quick Answer

DB Function

Calculates declining balance depreciation for a specified period.

✓ Excel✓ Google SheetsExcel All versions

Syntax

DB
(cost, salvage, life, period, [month])

Parameters

ParameterDescriptionRequired
costInitial cost of the asset.Required
salvageValue at the end of the depreciation life.Required
lifeNumber of periods over which the asset is depreciated.Required
periodThe period for which to calculate depreciation.Required
monthNumber of months in the first year (default 12).Optional

Basic Example

Depreciation in the first year

=DB(10000, 2000, 5, 1)
Result$1,840.00

A $10,000 asset with a $2,000 salvage value and 5-year life depreciates $1,840 in the first year under declining balance.

Advanced Examples

Example 1: Partial first year

Mid-year purchase

Asset purchased in April depreciates for 9 months the first year

=DB(10000, 2000, 5, 1, 9)
Result: $1,380.00
Only 9 months of depreciation are taken in the first year.

How DB Works

DB applies a declining depreciation rate to the remaining book value of the asset. The rate is calculated as 1 - (salvage/cost)^(1/life), rounded to three decimal places.

1
Enter cost
Type the cost
2
Enter salvage
Type the salvage
3
Enter life
Type the life
4
Enter period
Type the period
5
Calculate
Press Enter to get the result.

Important Notes & Limitations

  • Uses a fixed rate that does not change.

  • Can result in total depreciation not reaching salvage value exactly.

  • The first and last periods can be adjusted with the month argument.

Common Errors & Fixes

#NUM! errorPeriod is less than 1 or greater than life, or cost < salvage.

Fix: Check period and ensure cost is greater than or equal to salvage.

Wrong depreciationMonth argument was omitted for a partial first year.

Fix: Include the month argument if the asset was not purchased at the start of the year.

Download Practice File

Practice DB with Real Data

Download a sample CSV file with pre-populated data and practice exercises for the DB function. Works in both Excel and Google Sheets.

Works in Google SheetsCompatible with ExcelIncludes exercises

File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps

Frequently Asked Questions

What is the difference between DB and DDB?
DB uses a fixed declining rate. DDB lets you specify a higher rate, usually double the straight-line rate.
Does DB ever reach salvage value?
DB may not reach salvage exactly due to the fixed rate calculation.