DB Google Sheet Formula

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DB Formula Syntax

=DB(10000, 1000, 5, 1)

Example Use Case

Calculating asset depreciation using the declining balance method

Understanding the DB Formula

The DB function in Excel calculates the depreciation of an asset for a specified period using the fixed-declining balance method. It's an accounting tool for asset management—like tracking the decreasing value of equipment or vehicles over their useful life.

DB(10000, 1000, 5, 1) calculates the first year's depreciation for a $10,000 asset with $1,000 salvage value over 5 years. It takes cost, salvage, life, period, and optional month arguments, applying a fixed rate based on asset life to determine depreciation—valuable for tax and financial reporting.

Why Use DB?

DB models accelerated depreciation—think tax optimization or realistic valuation of rapidly depreciating assets. Its front-loaded expense pattern reflects how many assets lose value more quickly in early years, making it ideal for equipment, vehicles, or technology where this pattern applies.

Example with Sample Data

Parameters	Formula	Result
Cost: $10,000 Salvage: $1,000 Life: 5 years Period: 1	=DB(10000, 1000, 5, 1)	$3,500.00
Same asset Period: 2	=DB(10000, 1000, 5, 2)	$2,275.00
Cost: $10,000 Salvage: $1,000 Life: 5 years Period: 1 Month: 6	=DB(10000, 1000, 5, 1, 6)	$1,750.00

DB calculates declining balance depreciation: $3,500 in year 1, declining to $2,275 in year 2. With a 6-month first year, first-year depreciation is halved to $1,750. It's an accelerated depreciation calculator.