Syntax
DB(cost, salvage, life, period, [month])
| Parameter | Description |
|---|---|
| cost | Parameter of the DB function. |
| salvage | Parameter of the DB function. |
| life | Parameter of the DB function. |
| period | Parameter of the DB function. |
| [month] | (Optional.) Parameter of the DB function. |
Examples
First year of equipment depreciation
Formula
=DB(100000, 10000, 10, 1)
$20,600.00. A $100K asset with $10K salvage over 10 years depreciates $20,600 in year 1 using the fixed-rate declining balance.
Year 5 depreciation
Formula
=DB(100000, 10000, 10, 5)
$8,196.44. By year 5, the annual depreciation has dropped to about $8,196 because the book value is lower.
Partial first year
Formula
=DB(100000, 10000, 10, 1, 6)
$10,300.00. If the asset was purchased mid-year (6 months), first-year depreciation is prorated to half.
Common Errors
#NUM!
Period exceeds life, or life is zero, or salvage exceeds cost.
#VALUE!
An argument is non-numeric.
Tips
DB vs DDB
DB uses a fixed rate calculated from cost and salvage; DDB uses a fixed factor (default 2x straight-line). DB is required by certain tax codes, while DDB is the more commonly taught method.
Month parameter adjusts first year
The optional 5th argument specifies how many months the asset was used in the first year. Default is 12 (full year). Use this for mid-year purchases.
Rate is internally computed
DB calculates its own depreciation rate as 1 - (salvage/cost)^(1/life), rounded to 3 decimal places. You don't specify the rate — it's derived from your inputs.
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