VDB

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

Usage

Use the VDB formula with the syntax shown below, it has 5 required parameters and 2 optional parameters:

=VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])

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 is depreciated.
4. start_period (required):
   The period for which you want to calculate depreciation.
5. end_period (required):
   The period after which the asset is fully depreciated.
6. factor (optional):
   The rate at which the asset is depreciated. Defaults to 2 (double-declining balance method).
7. no_switch (optional):
   A logical value that specifies whether to switch to straight-line depreciation when depreciation is greater than the declining balance method. Defaults to FALSE.

Examples

Calculating depreciation using double-declining balance method

The VDB function can be used to calculate the depreciation of an asset using the double-declining balance method, which is a common method used in financial analysis.

Calculating depreciation with a different method

In addition to the double-declining balance method, the VDB function can be used to calculate depreciation using a different method by specifying a different depreciation factor.

Calculating depreciation for a specific period

The VDB function allows you to calculate the depreciation of an asset for a specific period, which is useful for financial analysis and budgeting.

Common Mistakes

Incorrect arguments

One of the most common mistakes is to supply the wrong arguments to the VDB function, resulting in incorrect calculations. Double-check the arguments and make sure they are in the correct order.

Incorrect factor

If the factor argument is specified incorrectly, the VDB function will return incorrect results. Make sure you understand how the factor affects the calculation before using this argument.

Related Formulas

The following functions are similar to VDB 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 VDB Google Sheets function on Google Support.