VDB
The VDB function returns the amount of depreciation of an asset over a chosen time interval, based on a specified depreciation rate.
VDB(cost, salvage, life, starting-per, ending-per, depr-factor, no-switch)
cost: The cost of the asset to be depreciated. cost is a number value often formatted as a currency and must be greater than or equal to 0. The cost is generally the purchase price, including taxes, delivery, and setup. Certain tax benefits may be deducted from the cost.
salvage: The salvage value of the asset. salvage is a number value often formatted as a currency and must be greater than or equal to 0.
life: A number value representing the number of periods over which the asset is depreciating, known as the depreciable life or the expected useful life. life must be greater than 0. A decimal (fractional) part of life is allowed (for example, 5.5 for a five and one-half year depreciable life).
starting-per: A number value representing the first period to include in the calculation. starting-per must be greater than 0 and less than ending-per.
ending-per: A number value representing the last period to include in the calculation. ending-per must be greater than 0 and greater than starting-per.
depr-factor: An optional number value that determines the depreciation rate. depr-factor is specified as a decimal number or as a percentage (using the percent sign). If omitted, 2 (200% for double-declining) is assumed. The higher the number, the more rapid the depreciation. For example, if a depreciation rate of one and one-half times the straight line depreciation is desired, use 1.5 or 150%.
no-switch: An optional modal value indicating whether depreciation switches over to the straight-line method.
switch (0, FALSE, or omitted): Switch to the straight-line method in the year that straight-line depreciation exceeds declining balance depreciation.
no switch (1, TRUE): Do not switch to the straight-line method.
Notes
The VDB function returns depreciation based on the variable declining balance method.
starting-per should be specified as the period prior to the first period you wish to include in the calculation. If you wish to include the first period, use 0 for starting-per.
If you wish to determine depreciation that includes only the first period, ending-per should be 1.
The currency shown in this function result depends on your Language & Region settings (in System Preferences in macOS 12 and earlier, System Settings in macOS 13 and later, and Settings in iOS and iPadOS).
Examples |
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Suppose you purchased an asset at a cost of $11,000.00 (cost), that has an estimated salvage value of $1,000 (salvage) at the end of its estimated depreciable life of 5 years (life). You plan to depreciate the asset using the 1.5 (150%) declining balance method (depr-factor). =VDB(11000, 1000, 5, 0,1, 1.5, 0) returns $3,300, the depreciation for the first year (starting-per is 0 and ending-per is 1). =VDB(11000, 1000, 5, 4, 5, 1.5, 0) returns $1,386.50, the depreciation for the fifth (last) year, assuming straight-line depreciation is used when greater than the declining-balance depreciation (no-switch is 0 or FALSE). =VDB(11000, 1000, 5, 4, 5, 1.5, 1) returns $792.33, the depreciation for the fifth (last) year, assuming that declining-balance depreciation is used at all times (no-switch is 1 or TRUE). |