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DDB Function Declining Balance Depreciation Calculator

Calculates depreciation using the Declining Balance method.

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Formula: ddb(cost, slvg, life, period, fct)

ddb: The result of the formula.

cost: The initial cost of the asset. 0 < cost

slvg: The salvage value. 0 <= slvg <= cost

life: The life of the asset. 0<= life

period: The period of the depreciation. 0 < period

fct: The depreciation rate. 0 < fct. Typically 1.5-2 and not 150 - 200.

Example 1

Calculate the annual depreciation of a 10,000 asset with a salvage value of 1,000 and a life of 5 for period 1 with a depreciation factor of 2.

 

Value Keystrokes Display Description
10000 cost 10,000.0000 Stores the cost value.
1000 slvg 1,000.0000 Stores the slvg value.
5 life 5.0000 Stores the life value.
1 period 1.0000 Stores the period value.
2 fct 2.0000 Stores the fct value.
  ddb 4,000.0000 Calculates the ddbF.

Example 2

What fct value is required for a 4,400 depreciation in period 1?

These keystrokes assume the values from example 1.

 

Value Keystrokes Display Description
4,200 ddb 4,200.0000 Stores the ddbF value.
  fct 2.2000 Calculates the fct value.

 

Reference:

Depreciation - Wikipedia