The **DDB** function is a *Finance* function that calculates the depreciation of an asset on the double-declining balance or another basis for a specified period. In this guide, we’re going to show you how to use the **DDB **function and go over some tips and error handling methods.

## Supported versions

- All versions

## DDB Function Syntax

## Arguments

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. |

[factor] |
Optional. The rate at which the balance declines. If omitted, defaults to 2 (the double-declining balance). |

## DDB Function Examples

You can specify the value which the **DDB** function returns by the **factor **argument. If the **factor **is omitted or entered as ** 2**, the function calculates the double-declining balance depreciation in a specified period based on the initial cost, salvage value and the useful life. You can change this factor if you do not want to use the double-declining balance method.

For example, we want to calculate the depreciation for the *2 ^{nd}* year of an asset with an initial cost of $20,000, a useful life of 5 years, and a salvage value of $4,000.

### Double-declining balance (w/o factor)

The following formula calculates the double-declining depreciation for our sample.

### Changing factor

You can customize the function by including a **factor** value other than ** 2,** denoting the double declining depreciation method.

There are two samples below for factor rates ** 1** and

**. See how depreciation values and periods varies.**

*1.75*=DDB(20000,4000,5,2,1)

=DDB(20000,4000,5,2,1.75)

## Remarks

- Use a
**factor**other than*2*to use a different method than the double-declining balance method. - The
**DDB**function uses the following formula: - You can use
**VDB**function if the depreciation is greater than the declining balance calculation.

## Excel Depreciation Functions

Straight line | SLN |

Sum-of-years' digits | SYD |

Fixed-declining balance | DB |

Variable-declining balance | VDB |

French declining balance | AMORDEGRC |

French straight line | AMORLINC |