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DDB Function

Excel 2007+

Summary

The DDB function calculates depreciation for an asset during a specific period using the double-declining balance method or a custom declining balance rate. This accelerated depreciation approach applies higher charges early in the asset's life, making it ideal for assets that lose value quickly.

Syntax

DDB(cost, salvage, life, period, [factor])

Parameters

Parameter	Type	Required	Description
cost	`number`	Yes	Initial purchase price of the asset
salvage	`number`	Yes	Expected value at end of useful life (can be 0)
life	`number`	Yes	Total number of periods over which asset depreciates
period	`number`	Yes	Specific period number for depreciation calculation (same units as life)
factor	`number`	No	Decline rate (defaults to 2.0 for double-declining balance)

Using the DDB Function

Use DDB when you need to allocate higher depreciation expenses in early years of an asset's life. Perfect for equipment, vehicles, or technology that rapidly loses value. The function ensures depreciation never exceeds the depreciable basis (cost minus salvage).

Common DDB Examples

First Year Depreciation (Annual)

=DDB(2400, 300, 10, 1)

Calculates first year's depreciation for $2400 asset with $300 salvage over 10 years. Returns approximately $480.

First Month Depreciation

=DDB(2400, 300, 10*12, 1, 2)

Monthly depreciation for first month when life measured in months. Returns $40.

First Day Depreciation

=DDB(2400, 300, 10*365, 1)

Daily depreciation calculation for first day. Returns approximately $1.32.

Custom Decline Rate

=DDB(2400, 300, 10, 2, 1.5)

Second year using 1.5 factor instead of double-declining. Returns $306.

Final Year Depreciation

=DDB(2400, 300, 10, 10)

Tenth year depreciation automatically adjusts to remaining basis. Returns approximately $22.12.

Frequently Asked Questions

Excel assumes factor = 2, implementing the true double-declining balance method.

Yes, set salvage to 0 if you expect no residual value at end of life.

Yes, if life is in years, period must be year numbers (1, 2, 3...). Same for months or days.

DDB automatically caps at (cost - salvage - prior depreciation).

DDB accelerates depreciation front-loaded vs. straight-line (SLN) or declining balance (SYD).

Common Errors and Solutions

#NUM! error

Cause: Non-numeric values or negative numbers in any argument

Solution: Ensure all inputs are positive numbers

#VALUE! error

Cause: Non-numeric data types passed to function

Solution: Verify cells contain valid numeric values

Unexpectedly low final period depreciation

Cause: Normal behavior - function protects remaining basis

Solution: This is correct; depreciation tapers naturally

Notes

All arguments must be positive numbers
Depreciation highest in period 1, declining thereafter
Switch to VDB for straight-line crossover
Factor > 2 accelerates depreciation more aggressively
Factor = 1 produces straight-line depreciation

Compatibility

Available in: Excel 2007, Excel 2010, Excel 2013, Excel 2016, Excel 2019, Excel 2021, Excel 365

Not available in:

Content last reviewed: December 9, 2025
Update frequency: As needed
Excel versions tested: Excel 2007+