DB

The DB function in Google Sheets calculates the depreciation of an asset for a specified period using the arithmetic declining balance method. This function is useful for financial analysis and budgeting purposes.

Function Syntax and Parameters

Syntax: DB(cost, salvage, life, period, [month])

Parameters:

cost: The initial cost of the asset.
salvage: The value of the asset at the end of its useful life.
life: The total number of periods over which the asset is depreciated.
period: The period for which depreciation is to be calculated.
month[Optional]: A logical value representing whether the calculation is done on a monthly basis. If omitted, this parameter defaults to 12 (which assumes calculation on an annual basis).

Step-by-Step Tutorial

Calculating depreciation using the DB function:
- Example: =DB(10000, 2000, 10, 5, 12)
- Result: The depreciation for the asset in the 5th period will be calculated based on an initial cost of $10,000, salvage value of $2,000, a useful life of 10 periods, and a monthly calculation basis of 12.