DDB

The DDB function in Google Sheets is a powerful tool to calculate the depreciation of an asset for a specified period using the double-declining balance method. Whether you're managing accounting records, analyzing asset depreciation, or forecasting future expenses, the DDB function simplifies the task. Dive into our comprehensive guide to master its application.

Function Syntax and Parameters

Syntax: DDB(cost, salvage, life, period, [factor])

Parameters:

• cost: The initial cost of the asset.
• salvage: The value of the asset at the end of its useful life.
• life: The number of periods over which the asset will be depreciated.
• period: The period for which you want to calculate the depreciation.
• factor: [Optional] The factor by which the straight-line depreciation rate should be multiplied.

Step-by-Step Tutorial

1. Using DDB with default parameters:

   • Example: =DDB(1000, 100, 5, 2)
   • Result: 320

2. Using DDB with a specified factor:

   • Example: =DDB(1000, 100, 5, 2, 1.5)
   • Result: 480

Use Cases and Scenarios

1. Asset Depreciation: Calculate the depreciation of fixed assets over time.
2. Financial Planning: Determine the annual depreciation expense for accounting purposes.
3. Investment Analysis: Evaluate the asset value decrease over specific periods.

Related Functions

• SLN: Calculate the straight-line depreciation of an asset.
• DB: Calculate the depreciation of an asset for a specified period using the fixed-declining balance method.

Related Articles

• Understanding Depreciation Methods in Accounting
• 10 Financial Functions Every Google Sheets User Should Know

Please note that the video, video path, and related articles are not available for the DDB function.