How to Use the DB Function in Excel

This guide explains how to use DB Function in Excel, including its syntax, required arguments, practical examples, and common errors.

Description: The function of calculating depreciation of assets with specific maturity using the method of calculating the declining balance by fixed level.

Syntax: DB (cost, salvage, life, period, [month]) .

Inside:

- cost : The initial cost of the property, required parameters.

- salvage : The recovery value of the property or the depreciation value of the asset, is a required parameter.

- Life : The number of depreciation periods of the property, also known as the useful life of the property, is the required parameter.

- Period : The period you want to calculate the depreciation, is a mandatory parameter and must have the same life unit.

- Month : Number of months counted in the first year, is an optional parameter if omitted the default value is 12.

Attention:

- In the first and last DB function, use a special formula different from other periods:

+ The first period is calculated by the formula: DB = cost * rate * month / 12.

+ The last period is calculated by the formula: DB = (cost - total depreciation of previous periods) * rate * (12-month)) / 12.

For example:

With the following data table:

Calculate:

- Calculating depreciation of assets in the first year.

- Calculating depreciation of assets in the second year.

- Calculating depreciation of assets in the fifth year, for 6 months.

- Calculating depreciation of assets in the first year.

In the cell to calculate enter the formula: = DB (D5, D6, D7,1) .

Result:

- Calculating depreciation of assets in the second year.

In the cell to calculate enter the formula: = DB (D5, D6, D7,2) .

Result:

- Calculating depreciation of assets in the 5th year, for 6 months.

In the cell to calculate enter the formula: = DB (D5, D6, D7,5,6) .

Result:

Through 3 values over the years, the depreciation value of assets has decreased over the years. Hope to help you identify and take reasonable measures when using the property.

Good luck!