# Documentation/Calc Functions/DDB

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## Function name:

DDB

## Category:

Financial Analysis

## Summary:

Calculates the amount of depreciation at a given period of time.

Use this form of depreciation if you require a higher initial depreciation value as opposed to linear depreciation. The depreciation value gets less with each period and is usually used for assets whose value loss is higher shortly after purchase (for example, vehicles, computers). Please note that the book value will never reach zero under this calculation type.

## Syntax:

DDB(**Cost**; **Salvage**; **Life**; **Period**[; **Factor**])

## Returns:

Returns a positive real number(in Currency units) which is the depreciation of an asset for a specified period using the arithmetic-declining method.

## Arguments:

**Cost** is a positive real number or a reference to the cell containing that number which fixes the initial cost of an asset.

**Salvage** is a non-negative real number or a reference to the cell containing that number which fixes the value of an asset at the end of its life.

**Life** is a positive real number or a reference to the cell containing that number which is the number of periods (for example, years or months) defining how long the asset is to be used.

**Period** is a non-negative real number or a reference to the cell containing that number which states the period for which the value is to be calculated.

**Factor** is a positive real number or a reference to the cell containing that number which is the factor by which depreciation decreases. If a value is not entered, the default is factor 2. If 2, double-declining balance is used.

- If either
**Cost**or**Factor**is less than or equal to 0 then the function returns an error value. - If
**Life**is less than**Period**then the function returns an error value. - If
**Period**is less than 1 then the function returns an error value. - If
**Salvage**is less than 0 then the function returns an error value.

## Additional details:

- The formula for DDB is:

where depreciation_{Period} is th total depreciation from prior periods.

## Examples:

Formula | Description | Returns |
---|---|---|

=DDB(75000;1;60;12;5.5) | A computer system with an initial cost of 75,000 currency units is to be depreciated monthly over 5 years. The value at the end of the depreciation is to be 1 currency unit. The factor is 5.5. The fixed-declining depreciation of the computer system is ₹2,387.65 currency units. | 2,387.65 (Currency units) |

=DDB(75000;1;60;12) | The function calculates the depreciation of an asset for a specified period using the arithmetic-declining method. The value Factor is 2 by default. |
1,721.81 (Currency units) |

=DDB(75000;1;5;12;5.5) | The function returns an error value since Life cannot be less than Period. |
Err:502 |

## Related LibreOffice functions:

## ODF standard:

## Equivalent Excel functions:

DDB