DB

• How to use DB formula?
• Examples of using DB formula
• DB formula not working?
• Similar formulas to DB

Usage

Use the DB formula with the syntax shown below, it has 4 required parameters and 1 optional parameter:

=DB(cost, salvage, life, period, [month])

1. cost (required):
   The initial cost of the asset.
2. salvage (required):
   The value of the asset at the end of its useful life.
3. life (required):
   The number of periods over which the asset will be depreciated.
4. period (required):
   The period for which to calculate depreciation.
5. 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

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 fixed-declining 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 fixed-declining balance method with other methods of depreciation like straight-line and sum-of-the-years'-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

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 double-declining 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 straight-line 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 sum-of-years' 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 sum-of-years' 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.