Double Declining Balance depreciation in excel | 2020

How to calculate Double Declining Balance Depreciation in Microsoft Excel?

The DDB function calculates the depreciation of an asset for in a given period using the double-declining balance method. The double-declining balance method computes depreciation at an accelerated rate – depreciation is highest in the first period and decreases in each successive period.
The Excel DDB function returns the depreciation of an asset for a given period using the double-declining balance method or another method you specify by changing the factor argument.

Syntax
=DDB (cost, salvage, life, period, [factor])
Arguments
 Cost - refers to the historical cost of the asset being depreciated.
 Salvage - is the value of the asset at the end of its useful life. It is also called residual value.
 Life - Periods over which asset is depreciated or refers to the total useful life of the asset.
 Period - refers to the number of period for which we want to determine depreciation expense.
 Factor - [optional] Rate at which the balance declines. If omitted, defaults to 2.

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