This article describes the formula syntax and usage of the VDB function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.
Returns the depreciation of an asset for any period you specify, including partial periods, using the double-declining balance method or some other method you specify. VDB stands for variable declining balance.
VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])
The VDB function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):
- Cost Required. The initial cost of the asset.
- Salvage Required. The value at the end of the depreciation (sometimes called the salvage value of the asset). This value can be 0.
- Life Required. The number of periods over which the asset is depreciated (sometimes called the useful life of the asset).
- Start_period Required. The starting period for which you want to calculate the depreciation. Start_period must use the same units as life.
- End_period Required. The ending period for which you want to calculate the depreciation. End_period must use the same units as life.
- Factor Optional. The rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method). Change factor if you do not want to use the double-declining balance method. For a description of the double-declining balance method, see DDB.
- No_switch Optional. A logical value specifying whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation.
- If no_switch is TRUE, Microsoft Excel does not switch to straight-line depreciation even when the depreciation is greater than the declining balance calculation.
- If no_switch is FALSE or omitted, Excel switches to straight-line depreciation when depreciation is greater than the declining balance calculation.
Important All arguments except no_switch must be positive numbers.
The example may be easier to understand if you copy it to a blank worksheet.
How do I copy an example?
- Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
Important: Do not select the row or column headers.
Selecting an example from Help
- Press CTRL+C.
- Create a blank workbook or worksheet.
- In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
- To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
After you copy the example to a blank worksheet, you can adapt it to suit your needs.
||Lifetime in years
|=VDB(A2, A3, A4*365, 0, 1)
||First day's depreciation. Excel automatically assumes that factor is 2 (1.32)
|=VDB(A2, A3, A4*12, 0, 1)
||First month's depreciation (40.00)
|=VDB(A2, A3, A4, 0, 1)
||First year's depreciation (480.00)
|=VDB(A2, A3, A4*12, 6, 18)
||Depreciation between the sixth month and the eighteenth month (396.31)
|=VDB(A2, A3, A4*12, 6, 18, 1.5)
||Depreciation between the sixth month and the eighteenth month using a factor of 1.5 instead of the double-declining balance method (311.81)
|=VDB(A2, A3, A4, 0, 0.875, 1.5)
||Depreciation for the first fiscal year that you own the asset, assuming that tax laws limit you to 150-percent depreciation of the declining balance. Asset is purchased in the middle of the first quarter of the fiscal year. (315.00)
Note The results are rounded to two decimal places.