All versions
Financial
The Excel DB function returns depreciation using the fixed-declining-balance method (accelerated, a constant rate on the reducing balance).
Quick answer:
=DB(10000, 1000, 5, 1) // year 1
Syntax
=DB(cost, salvage, life, period, [month])
| Argument | Description | |
|---|---|---|
cost | Required | Initial cost. |
salvage | Required | End-of-life value. |
life | Required | Useful life in years. |
period | Required | The period to compute. |
month | Optional | Months in the first year (default 12). |
How to use it
DB returns depreciation using the fixed-declining-balance method (accelerated, a constant rate on the reducing balance).
=DB(10000, 1000, 5, 1) // year-1 declining-balance depreciation
Try it: interactive demo
Live demo
This is the formula pattern DB uses — copy it into Excel with your own numbers.
Result: computed in Excel
Practice workbook
Download the free DB practice workbook
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Frequently asked questions
How does declining balance work?
A fixed percentage is applied to the remaining book value each year, so depreciation is higher early on.
What is the month argument?
It prorates the first year if the asset was placed in service partway through the year.
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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