Syntax

DDB(Cost, Salvage, Life, Period)

Description

Calculates the depreciation of an asset for a specified Period of time using the double-declining balance method.

Comments

The double-declining balance method calculates the depreciation of an asset at an accelerated rate. The depreciation is at its highest in the first period and becomes progressively lower in each additional period. DDB uses the following formula to calculate the depreciation:

  DDB = ((Cost – Total_depreciation_from_all_other_periods) * 2) / Life

The DDB function uses the following parameters:

Parameter

Description

Cost

Double representing the initial cost of the asset.

Salvage

Double representing the estimated value of the asset at the end of its predicted useful life

Life

Double representing the predicted length of the asset's useful life

Period

Double representing the period for which you wish to calculate the depreciation

Life and Period must be expressed using the same units. For example, if Life is expressed in months, then Period must also be expressed in months.

Example

This example calculates the depreciation for capital equipment that cost $10,000, has a service life of ten years, and is worth $2,000 as scrap. The dialog box displays the depreciation for each of the first four years.

Const crlf = Chr$(13) + Chr$(10)

Sub Main()

  s$ = "Depreciation Table" & crlf & crlf
  For yy = 1 To 4
    CurDep# = DDB(10000.0,2000.0,10,yy)
    s$ = s$ & "Year " & yy & " : " & CurDep# & crlf
  Next yy
  MsgBox s$
End Sub

See Also

Sln (function); SYD (function).

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