All versions
Financial
The Excel VDB function returns depreciation for any partial or full period using the variable-declining-balance method, optionally switching to straight-line.
Quick answer:
=VDB(10000, 1000, 5, 0, 1) // first year
Syntax
=VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])
| Argument | Description | |
|---|---|---|
cost | Required | Initial cost. |
salvage | Required | End value. |
life | Required | Useful life. |
start_period | Required | Start of the range. |
end_period | Required | End of the range. |
factor | Optional | Decline rate (default 2). |
no_switch | Optional | TRUE keeps declining-balance; FALSE (default) switches to straight-line when better. |
How to use it
VDB returns depreciation for any partial or full period using the variable-declining-balance method, optionally switching to straight-line.
=VDB(10000, 1000, 5, 0, 1) // flexible declining balance
Try it: interactive demo
Live demo
This is the formula pattern VDB uses — copy it into Excel with your own numbers.
Result: computed in Excel
Practice workbook
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Frequently asked questions
What makes VDB flexible?
It depreciates over any start-to-end span (even fractional) and can auto-switch to straight-line when that gives more depreciation.
What does no_switch do?
FALSE (default) lets VDB switch to straight-line late in life; TRUE forces pure declining balance.
Which Excel versions support it?
All modern versions.
Why might it return #NUM! or #VALUE!?
Out-of-range arguments (e.g. negative rate or settlement after maturity) give #NUM!; non-numeric inputs give #VALUE!.
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