DDB (Primitive Spread Function) calculates the depreciation of an asset for a specified period using the double-declining balance method or another method you specify.

SYNTAX:

DDB(Cost, Salvage, Life, Period, Factor)

REMARKS:

Arguments are as follows:

Argument Description 
Cost : Initial cost of the asset 
Salvage : Value at the end of depreciation 
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. 
Factor (Optional) : Rate at which the value declines. If omitted, the calculation assumes 2 (double-declining method) Change this to a value other than 2 to use a different method. 

All five arguments must be positive numbers.

The DDB function uses the following formula to calculate depreciation for a period:

Cost – Salvage(total depreciation from prior periods) × Factor/Life 

EXAMPLES:

DDB(500000,5000,5,1,4)=400000