Quick Answer

VDB Function

Calculates variable declining balance depreciation for any period you specify.

Syntax

VDB

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

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
start_period	Starting period for which to calculate depreciation.	Required
end_period	Ending period for which to calculate depreciation.	Required
factor	Rate of decline (default 2 for double-declining).	Optional
no_switch	If TRUE, does not switch to straight-line (default FALSE).	Optional

Basic Example

Depreciation for the first year using declining balance with straight-line switch

=VDB(10000, 2000, 5, 0, 1)

Result$4,000.00

First-year depreciation for a $10,000 asset using double-declining balance, switching to straight-line if beneficial.

Advanced Examples

Example 1: Cumulative depreciation for years 2-4

Tax reporting

Total depreciation from the start of year 2 to the end of year 4

=VDB(10000, 2000, 5, 1, 4)

Result: Total depreciation for years 2-4

VDB can calculate depreciation over a range of periods.

How VDB Works

VDB combines the declining balance method with an optional straight-line switch. By default, it switches to straight-line when that gives higher depreciation. This maximizes the deduction while ensuring the asset is not depreciated below salvage value.

1

Enter cost

Type the cost

2

Enter salvage

Type the salvage

3

Enter life

Type the life

4

Enter start_period

Type the start_period

5

Calculate

Press Enter to get the result.

Important Notes & Limitations

Can calculate depreciation for a single period or a range of periods.
Automatically switches to straight-line unless no_switch is TRUE.
More flexible than DDB for partial periods and range calculations.

Common Errors & Fixes

#NUM! errorStart or end period is invalid or cost < salvage.

Fix: Check period values and ensure cost >= salvage.

Too much depreciationno_switch was set to TRUE.

Fix: Use the default or FALSE for no_switch to allow straight-line switch.

Download Practice File

Practice VDB with Real Data

Download a sample CSV file with pre-populated data and practice exercises for the VDB 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

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Frequently Asked Questions

What is the difference between VDB and DDB?

VDB can switch to straight-line and can calculate depreciation over a range. DDB uses pure declining balance.

When should I use VDB?

Use VDB when you want the most tax-efficient depreciation method that combines declining balance and straight-line.