The DB function is a Finance function that calculates the depreciation of an asset on the fixed-declining balance basis for a specified period. In this guide, we’re going to show you how to use the DB function and go over some tips and error handling methods.
- All versions
DB Function Syntax
|cost||The initial cost of the asset.|
|salvage||The value after the asset has been fully depreciated, salvage value.|
|life||The number of periods over which asset is depreciated, useful life of the asset.|
|period||Specific period to calculation depreciation for.|
|[month]||Optional. The number of months in the first year. If omitted, it is assumed to be 12.|
DB Function Examples
The DB function returns the fixed-declining balance depreciation in a specified period based on the initial cost, salvage value and the useful life. Optionally, you can provide the month number of the first year.
For example, we want to calculate the depreciation for the 2nd year of an asset with an initial cost of $20,000, a useful life of 5 years, and a salvage value of $4,000.
DB function with month
If month is entered, the function assumes that the first year only includes the number of months. In our example, we entered 7.
You can see that the depreciation value for the first year (period) is less than the second year due to missing months in the first year.
DB function without month
You can omit the month argument if the first year includes all 12 months.
- The fixed-declining balance method can be calculated manually by the following formulas:
- The number of the period should match with the period you want to calculate the depreciation. If the life value is in years, the per value should be a year as well.
Excel Depreciation Functions
|French declining balance||AMORDEGRC|
|French straight line||AMORLINC|