DDB Google Sheet Formula

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DDB Formula Syntax

=DDB(10000, 1000, 5, 1)

Example Use Case

Calculating asset depreciation using the double-declining balance method

Understanding the DDB Formula

The DDB function in Excel calculates the depreciation of an asset for a specified period using the double-declining balance method. It's an aggressive depreciation tool for asset management—like maximizing early deductions for rapidly depreciating assets.

DDB(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 factor arguments, providing accelerated depreciation that's approximately twice the straight-line rate—ideal for assets that lose value quickly initially.

Why Use DDB?

DDB maximizes early deductions—think tax strategies or realistic expense patterns for technology assets. Its aggressive front-loading (twice straight-line by default) makes it popular for assets that rapidly lose value, supporting tax planning or more accurate financial statements for quickly depreciating items.

Example with Sample Data

Parameters	Formula	Result
Cost: $10,000 Salvage: $1,000 Life: 5 years Period: 1	=DDB(10000, 1000, 5, 1)	$4,000.00
Same asset Period: 2	=DDB(10000, 1000, 5, 2)	$2,400.00
Same asset Period: 1 Factor: 1.5	=DDB(10000, 1000, 5, 1, 1.5)	$3,000.00

DDB calculates aggressive depreciation: $4,000 in year 1 (40% of cost), declining to $2,400 in year 2. With a 1.5 factor, year 1 is reduced to $3,000. It's a rapid depreciation calculator.