# DB

## Content

This function calculates the depreciation of an asset for a specified period using the fixed‑declining balance method.

## Syntax

`DB(cost, salvage, life, period, month)`

## Arguments

This function has these arguments:

| Argument | Description |
| -------- | ----------- |
| *cost* | Initial cost of the asset |
| *salvage* | Value at the end of the depreciation period |
| *life* | Number of periods over which the asset is being depreciated |
| *period* | Period for which you want to calculate the depreciation; use the same units as the life argument |
| *month* | [Optional] Number of months in the first year; if omitted, the calculation uses 12 months |

## Remarks

The fixed-declining balance method computes depreciation at a fixed rate. This function uses the following equation to calculate depreciation for a period:

(cost – total depreciation from prior periods) x rate

where:

rate = 1 – ((salvage/cost)^(1/life)), rounded to three decimal places

Depreciation for the first and last periods is a special case. For the first period, the function uses this equation:

dep = cost x rate x month/12

For the last period, the function uses this equation:

dep = ((cost – total dep. from prior periods) x rate x (12 – month))/12.

## Data Types

Accepts numeric data for all arguments. Returns numeric data.

## Examples

`DB(B1,1000,10,1)`

`DB(R1C2,10000,10,1)`

`DB(500000,5000,5,1,10)` gives the result of $25,0833.3333333333.