Documentation/Calc Functions/DDB

Function name:
DDB

Category:
Financial Analysis

Summary:
Calculates the depreciation of an asset for a given period using the declining balance method. This is an accelerated depreciation method with greater depreciation at the beginning of an asset’s lifetime and less towards the end. If the selectable depreciation factor is set to 2, this gives the double declining balance method.

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 declining balance method. The currency units are the same as those used for the Cost and Salvage values.

Arguments:
Cost is a non-negative 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. Salvage and Cost should be in the same currency units.

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 positive 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 specifies the depreciation factor. If a value is not specified, the default is 2. If Factor is 2, the double declining balance method is used.

The function reports an invalid argument error (Err:502) if:
 * Cost is less than 0;
 * Salvage is less than 0;
 * Salvage is greater than Cost;
 * Life is less than or equal to 0;
 * Life is less than Period;
 * Period is less than 1;
 * Factor is less than or equal to 0.

If any argument is non-numeric then the function reports a #VALUE! error.

Additional details:
To calculate the depreciation, DDB uses a fixed rate, which is given by $$ rate = \frac{Factor}{Life}. $$

The depreciation in each period is calculated as $$ min(value\_at\_start\_of\_period * rate; value\_at\_start\_of\_period - Salvage). $$

Thus the asset is depreciated at $$rate $$ until the value is Salvage.

Related LibreOffice functions:
[[Special:MyLanguage/Documentation/Calc_Functions/DB DB]

[[Special:MyLanguage/Documentation/Calc_Functions/VDB VDB]

[[Special:MyLanguage/Documentation/Calc_Functions/SLN SLN]

ODF standard:
Section 6.12.14, part 2

Equivalent Excel functions:
DDB