DB (Primitive Spread Function) calculates the depreciation of an asset for a specified period using the fixed-declining balance method.

SYNTAX:

DB(Cost, Salvage, Life, Period, Month)

REMARKS:

Arguments are as follows:

Argument Description 
Cost      Initial cost of the asset 
Salvage Value at the end of the depreciation period 
Life        Number of periods over which the asset is being depreciated 
Period    Period for which you want to calculate the depreciation
             Use the same units as the Life argument. 
Month    (Optional) Number of months in the first year
             If omitted, the calculation assumes 12 months. 

The fixed-declining balance method computes depreciation at a fixed rate. The DB function uses the following formulas to calculate depreciation for a period:

(Cost – total depreciation from prior periods) × rate

where:

rate=1 – ((Salvage/Cost)^(1/Life)), rounded to three decimal places

Depreciation for the first and last periods is a special case. For the first period, the DB function uses this formula:

Cost × rate × month/12

For the last period, the DB function uses this formula:

((Cost – total depreciation from prior periods) × rate × (12 – month))/12 

EXAMPLES:

DB(R1C2,10000,10,1)
DB(500000,5000,5,1,10)=250833.3333333333