## Introduction:-

DB function in excel is a financial function. It is used to return the depreciation value of an asset during a mentioned period by using fixed declining balance method. It is a worksheet function and can be entered in the cell in which value is required.

## Syntax:-

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

## Arguments:-

- Cost: It is the initial price of the asset.
- Salvage: Value of asset after depreciation.
- Life: It is the period in which asset is depreciated.
- Period: Period for which depreciation will be calculated.
- Month: It is the number of months for first depreciation year.

## Keynotes:-

- Microsoft Excel stores dates as serial numbers . By default, January 1, 1900 is serial number 1 and corresponding dates have serial number greater than 1.
- The fixed-declining balance method calculates depreciation at a fixed rate. DB function uses the following formulas to calculate depreciation for a period:

(cost – depreciation of prior periods) * rate

Here Rate = 1 – ((salvage / cost) ^ (1 / life))

- Depreciation for first and last period is calculated using:
- First Period: cost * rate * month / 12
- Last Period: ((cost – total depreciation from prior periods) * rate * (12 – month)) / 12

## Examples

In this example, various arguments are entered in column A and their values are entered in column B , the required depreciation value is entered using formula DB in column D.