MS Excel: How to use the DB Function (WS)

This Excel tutorial explains how to use the Excel DB function with syntax and examples.

Description

The Microsoft Excel DB function returns the depreciation of an asset for a given time period based on the fixed-declining balance method.

The DB function is a built-in function in Excel that is categorized as a Financial Function. It can be used as a worksheet function (WS) in Excel. As a worksheet function, the DB function can be entered as part of a formula in a cell of a worksheet.

Syntax

The syntax for the DB function in Microsoft Excel is:

DB( cost, salvage, life, period, [number_months] )

Parameters or Arguments

cost

The original cost of the asset.

salvage

The salvage value after the asset has been fully depreciated.

life

The useful life of the asset or the number of periods that you will be depreciating the asset.

period

The period that you wish to calculate the depreciation for. Use the same units as for the life.

number_months

Optional. It is the number of months in the first year of depreciation. If this parameter is omitted, the DB function will assume that there are 12 months in the first year.

Returns

The DB function returns a numeric value.

Applies To

• Excel for Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000

Type of Function

• Worksheet function (WS)

Example (as Worksheet Function)

Let's look at an example to how you would use the DB examples and explore how to use the DB function as a worksheet function in Microsoft Excel:

This first example returns the depreciation for an asset that costs $10,000, with a salvage value of $5,000. The useful life of the asset is 5 years. The depreciation is being calculated for the first year, and there are 12 months in the first year.

=DB(10000, 5000, 5, 1, 12)
Result: $1,290.00

This next example returns the depreciation for an asset that costs $10,000, with a salvage value of $5,000. The useful life of the asset is 5 years. The depreciation is being calculated for the second year, and there are 12 months in the first year.

=DB(10000, 5000, 5, 2, 12)
Result: $1,123.59

This next example returns the depreciation for an asset that costs $10,000, with a salvage value of $5,000. The useful life of the asset is 5 years. The depreciation is being calculated for the third year, and there are 10 months in the first year.

=DB(10000, 5000, 5, 3, 10)
Result: $1,002.80