DDB Function
Calculates double-declining balance depreciation for a specified period.
Syntax
Parameters
| Parameter | Description | Required |
|---|---|---|
| cost | Initial cost of the asset. | Required |
| salvage | Value at the end of the depreciation life. | Required |
| life | Number of periods over which the asset is depreciated. | Required |
| period | The period for which to calculate depreciation. | Required |
| factor | Rate at which the balance declines (default 2 for double-declining). | Optional |
Basic Example
First-year double-declining depreciation
=DDB(10000, 2000, 5, 1)A $10,000 asset with 5-year life depreciates $4,000 in the first year using double-declining balance.
Advanced Examples
Example 1: Custom declining factor
150% declining balanceUse a factor of 1.5 for 150% declining balance
=DDB(10000, 2000, 5, 1, 1.5)How DDB Works
DDB applies a fixed rate multiplied by the factor to the remaining book value. The default factor of 2 creates double-declining balance. The method does not switch to straight-line automatically.
Important Notes & Limitations
Total depreciation may exceed salvage value if not monitored.
Does not switch to straight-line automatically like VDB.
Factor can be changed for different depreciation speeds.
Common Errors & Fixes
#NUM! errorPeriod is invalid or cost < salvage.Fix: Check that period is between 1 and life and cost >= salvage.
Depreciation exceeds book valueDDB does not stop at salvage value automatically.Fix: Use VDB or manually limit the final period.
Download Practice File
DDB
ddbPractice DDB with Real Data
Download a sample CSV file with pre-populated data and practice exercises for the DDB function. Works in both Excel and Google Sheets.
File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps