Returns the depreciation of an asset for any period you specify, including partial periods, using the double-declining balance method or some other method you specify. VDB stands for variable declining balance.
Syntax
VDB(cost,salvage,life,start_period,end_period,factor,no_switch)
Cost is the initial cost of the asset.
Salvage is the value at the end of the depreciation (sometimes called the salvage value of the asset).
Life is the number of periods over which the asset is being depreciated (sometimes called the useful life of the asset).
Start_period is the starting period for which you want to calculate the depreciation. Start_period must use the same units as life.
End_period is the ending period for which you want to calculate the depreciation. End_period must use the same units as life.
Factor is the rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method). Change factor if you do not want to use the double-declining balance method. For a description of the double-declining balance method, see DDB.
No_switch is a logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation.
All arguments except no_switch must be positive numbers.
Examples
Suppose a factory purchases a new machine. The machine costs $2,400 and has a lifetime of 10 years. The salvage value of the machine is $300. The following examples show depreciation over several periods. The results are rounded to two decimal places.
VDB(2400, 300, 3650, 0, 1) equals $1.32, the first day's depreciation. Microsoft Excel automatically assumes that factor is 2.
VDB(2400, 300, 120, 0, 1) equals $40.00, the first month's depreciation.
VDB(2400, 300, 10, 0, 1) equals $480.00, the first year's depreciation.
VDB(2400, 300, 120, 6, 18) equals $396.31, the depreciation between the sixth month and the eighteenth month.
VDB(2400, 300, 120, 6, 18, 1.5) equals $311.81, the depreciation between the sixth month and the eighteenth month using a factor of 1.5 instead of the double-declining balance method.
Suppose instead that the $2,400 machine is purchased in the middle of the first quarter of the fiscal year. The following formula determines the amount of depreciation for the first fiscal year that you own the asset, assuming that tax laws limit you to 150-percent depreciation of the declining balance:
VDB(2400, 300, 10, 0, 0.875, 1.5) equals $315.00