Monday 1 May 2017

Excel - Microsoft Excel DB Function

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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