DB
TheDB
function calculates the depreciation of an asset for a specified period using the fixeddeclining balance method. This method uses a fixed rate to calculate depreciation, with a higher depreciation rate in the early years of the asset's life. The function is commonly used in accounting and financial analysis.
Usage
Use the DB
formula with the syntax shown below, it has 4 required parameters and 1 optional parameter:
 cost (required):
The initial cost of the asset.  salvage (required):
The value of the asset at the end of its useful life.  life (required):
The number of periods over which the asset will be depreciated.  period (required):
The period for which to calculate depreciation.  month (optional):
An optional argument that specifies whether to use months (TRUE) or years (FALSE) in the calculation. If omitted, the function assumes years.
Examples
Here are a few example use cases that explain how to use theDB
formula in Google Sheets.
Calculating depreciation for a single period
Suppose you purchase a machine for $10,000, with a salvage value of $1,000, a useful life of 5 years, and you want to calculate the depreciation for the first year. You can use the DB
function to calculate the depreciation for the first year, which is $3,200 using the fixeddeclining balance method.
Calculating depreciation for multiple periods
Suppose you purchase the same machine as in the previous example, but you want to calculate the depreciation for all five years. You can use the DB
function in combination with other functions like ROW
and IF
to calculate the depreciation for each period.
Comparing depreciation methods
Suppose you want to compare the fixeddeclining balance method with other methods of depreciation like straightline and sumoftheyears'digits. You can use the DB
function in combination with other functions like SLN
and SYD
to compare the results of each method.
Common Mistakes
DB
not working? Here are some common mistakes people make when using the DB
Google Sheets Formula:
Missing or incorrect arguments
One or more arguments are missing or incorrect. Check that all required arguments are included and that they are in the correct order.
Incorrect period value
The period argument should be a number between 1 and the life of the asset. Check that the value entered is correct.
Incorrect month value
The month argument should be a number between 1 and 12. Check that the value entered is correct.
Incorrect or inconsistent units
Make sure that all arguments are in the same units (e.g. years for life and period, dollars for cost and salvage).
Incorrect salvage value
The salvage value should be less than the cost of the asset. Check that the value entered is correct.
Related Formulas
The following functions are similar to DB
or are often used with it in a formula:

DDB
The
DDB
function returns the depreciation of an asset using the doubledeclining balance method. This function is most commonly used to calculate depreciation of an asset over time. The calculation takes into account the initial cost of the asset, its salvage value, the asset's estimated life, and the end of the period for which depreciation is being calculated. 
SLN
The SLN function calculates the depreciation of an asset for a single period using the straightline method. This method assumes that the asset loses an equal amount of value each year over its useful life. The function takes three arguments: the initial cost of the asset, its salvage value at the end of its useful life, and the total number of periods of its useful life.

SYD
The
SYD
function returns the sumofyears' digits depreciation of an asset for a specified period. It is commonly used in accounting to calculate the depreciation expense of an asset over its useful life. The function calculates the depreciation for a specific period using the sumofyears' digits method. This method assumes that the asset's useful life will decline more quickly in the early years of its life and slow down over time.
Learn More
You can learn more about the DB
Google Sheets function on Google Support.