Excel - Microsoft Excel VDB Function

Description

The Excel VDB function calculates the depreciation of an asset, using the Double Declining Balance Method, or another specified depreciation rate, for a specified period (including partial periods). 

The format of the function is : 

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

where the arguments are as shown in the table below: 

VDB Function Example 1

In the example on the right, the VDB function uses the double declining depreciation method to calculate the depreciation across different periods, of an asset that cost $10,000 at the start of year 1, and has a salvage value of $1,000 after 5 years. 

The formulas are shown in the top spreadsheet, and the results are shown in the bottom spreadsheet. 

Note that the sum of the depreciations from year 1, years 2 & 3, and years 4 & 5 add up to $9,000, so the asset value at the end of year 5 is, 

$10,000 - $9,000 = $1,000 

which, as expected, is the specified salvage value. 

Note also, that, as the [factor] and [no_switch] arguments are omitted from the examples, these arguments take the default values of 2 and FALSE respectively. 

VDB Function Example 2

If, in the example above, you wanted to find the depreciation for a partial period, eg. for 1 month, you would need to specify the life, start_period and end_period arguments in terms of months. 

This is shown in the spreadsheet on the right. The life argument of 5 years is equal to 60 months, the first month is specified as periods 0 to 1, the first six-months are specified as periods 0 to 6, etc. 

VDB Function Errors

If you get an error from the Excel VDB Function, this is likely to be one of the following : 

Common Errors