Finance in Excel 6 - Calculate Double Declining Balance Method of Depreciation in Excel

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Calculate depreciation in Excel using the Double Declining Balance Method and function in Excel. This tutorial explains exactly how to use the DDB() function in Excel and also why you should not use this function in Excel. The Double Declining Balance Method of calculating depreciation is not necessarily a bad method to use, but this function in Excel will not fully depreciate an asset when the salvage value is only a proportionally small amount of the asset's initial cost or purchase price. The VDB() function for calculating depreciation in Excel is the function that should be used and is covered in the next tutorial (Finance in Excel 7).
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Have a great day!

[@lilsaintx1]

Thank you so0o0o0 much! this helped a lot...i was spending hours trying to figure this out, but with your help it only took me 2 mintues!!

[@cademacleanYT]

Dude, I had to use this for a class. Without you I would have failed!

[@weeabooz115]

shutup

[@cademacleanYT]

@@weeabooz115 lol

[@weeabooz115]

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[@charlottequick-schneider9018]

Under declining balance depreciation, the salvage value is not included in the computation of depreciation expense.

[@corvette4554]

i need the manual formula for ddb - life 10 years i have used this formula : first year :(cost*20%) 2nd until 8th year: (cost - dep from prior periods ) *20% but the year 9 and 10 i didnt get the right numbers as the last year the balance should be ((0)) so do u have any idea how to correct that ?

[@mortytea]

what if the salvage value is zero???

[@Orcas_fan]

if the acquisition date of the asset is somewhere during the year, eg 23 April 2011 and i would like to calculated the year to date depreciation for year 2015 using DDB function, what period should i put to return the correct depreciation value? 4.69589?