DDB Function in Excel: Double-Declining Depreciation

DDB Function in Excel: Double-Declining Depreciation featured illustration

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⏱ 2 min readUpdated 28 September 2026

FinancialLevel: ExpertAvailable in: Excel 2007+

In this article
  1. Syntax
  2. Examples
  3. Example 1
  4. DDB in practice
  5. Where you will use it
  6. Worked example
  7. Mistakes people make
  8. Related functions
  9. Continue learning

DDB front-loads depreciation: more in early years, less later. It suits laptops and vehicles that lose value fast.

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Syntax

=DDB(cost, salvage, life, period, [factor])
Argument What it means
factor Default 2 (double).

Examples

Example 1

=DDB(90000, 10000, 5, 1)

Year 1 on a ₹90,000 laptop: ₹36,000.

DDB in practice

Where you will use it

  • Double-declining depreciation
  • Fast write-off of tech assets
  • Tax vs book comparisons

Worked example

YearFormulaResult
1=ROUND(DDB(500000,50000,5,A2),0)₹ 2,00,000.00
2=ROUND(DDB(500000,50000,5,A3),0)₹ 1,20,000.00
3=ROUND(DDB(500000,50000,5,A4),0)₹ 72,000.00

Results calculated in Excel.

Mistakes people make

MistakeWhat to do instead
FactorDefault 2 = double; change the 5th argument
SalvageDDB stops at salvage value

SLN · DB · SYD · VDB

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    Practice workbook: Financial: EMI, SIP, NPV, IRR, depreciation23 tasks on realistic sales data — type your formula, the Check column turns green when it is right. Answers sheet included.
    ⬇ XLSX · 35 KB

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