Description
The Excel DB function calculates the depreciation of an asset, using the Fixed Declining Balance Method, for each period of the asset's lifetime.
The format of the function is :
DB( cost, salvage, life, period, [month] )
where the arguments are as shown in the table below:
Excel DB Function Example 1
In the example below, the DB function is used to find the yearly depreciation of an asset that cost $10,000 at the start of year 1, and has a salvage value of $1,000 after 5 years.
Note that, in this example, the yearly rate of depreciation, calculated from the equation 1-(Salvage/Cost)^(1/Life) is calculated to be 36.9%
Excel DB Function Example 2
In the example below, the DB function is used with the same cost, salvage and life argument values as in Example 1 above. However, in the following example, the depreciation calculation starts 6 months into year 1.
As the cost, salvage and life arguments are the same as in the previous example, the yearly rate of depreciation, is again calculated to be 36.9%
DB Function Common Errors
If you get an error from the Excel DB Function, this is likely to be one of the following :
Common Errors
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