MS Excel: Vdb Function
In Excel, the Vdb function returns the depreciation of an asset for a given time period based on a variable declining balance depreciation method.
The syntax for the Vdb function is:
Vdb( cost, salvage, life, start_period, end_period, factor, no_switch )
cost is the original cost of the asset.
salvage is the salvage value after the asset has been fully depreciated.
life is the useful life of the asset or the number of periods that you will be depreciating the asset.
start_period is the starting period that you wish to calculate the depreciation for. Use the same units as for the life.
end_period is the ending period that you wish to calculate the depreciation for. Use the same units as for the life.
factor is optional. It is the rate to use for the declining balance. If this parameter is omitted, the Vdb function will assume a factor of 2.
no_switch is optional. It can either be a value of TRUE or FALSE.
Value Explanation TRUE Excel will use the declining balance method of depreciation. FALSE Excel will use the straight-line depreciation method when the straight-line depreciation is greater than the declining balance depreciation amount. (default)
If the no_switch parameter is omitted, the Vdb function will assume a no_switch value of FALSE.
Applies To:
- Excel 2007, Excel 2003, Excel XP, Excel 2000
For Example:
Let's take a look at a few examples:
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 6th to 12th month time frame. A factor of 2 is used.
=Vdb(10000, 5000, 5*12, 6, 12, 2, TRUE)
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 18th to 24th month time frame. A factor of 1 is used.
=Vdb(10000, 5000, 5*12, 18, 24, 1, TRUE)