Financial
DB Function in Excel
Returns the depreciation of an asset using the fixed-declining balance method.
Syntax
- =DB(cost, salvage, life, period, [month])
Arguments
- cost (required): Initial cost of asset
- salvage (required): Value at end of depreciation
- life (required): Number of periods
- period (required): Period to calculate depreciation for
- month (optional): Months in first year (default 12)
Examples
- =DB(10000, 1000, 5, 1) - First year depreciation - Result: },,690
Excel DB function documentation
- DB returns depreciation of an asset for a specified period using the fixed-declining balance method.
- Syntax: =DB(cost, salvage, life, period, [month]).
- Use DB for accounting models where accelerated depreciation is required but with fixed declining logic.
- Related planning metrics often tie into [NPV](/functions/npv/) and [IRR](/functions/irr/) after-tax cash-flow analysis in [Financial functions](/categories/financial/).
DB parameters and accounting context
- cost is initial asset value and salvage is residual value at end of life.
- life is number of periods in useful life; period identifies which period depreciation to return.
- month is optional and adjusts first-year month count.
- DB computes declining depreciation; later periods usually show smaller expense.
Step-by-step: annual depreciation schedule
- Step 1 — Set cost, salvage, and life in dedicated input cells.
- Step 2 — Create period numbers from 1 to life.
- Step 3 — Use =DB(cost,salvage,life,period) down the schedule.
- Step 4 — Sum depreciation to confirm total approaches cost minus salvage.
- Step 5 — Feed after-tax impacts into project cash-flow valuation models.
DB vs DDB vs SLN
- DB uses fixed declining-balance depreciation with built-in rate logic.
- DDB uses double-declining style and can be more accelerated early.
- SLN gives straight-line equal depreciation each period.
- Method choice affects earnings profile and investment evaluation timing.
Worked examples to copy
- Basic DB year 1: =DB(50000,5000,5,1).
- DB year 3: =DB(50000,5000,5,3).
- First year with 9 months: =DB(50000,5000,5,1,9).
- Project model tie-in: include depreciation tax shield before [NPV](/functions/npv/) computation.
People also ask
- Why does DB amount decline each year? — Balance base shrinks over time.
- Can DB return zero early? — It tapers as asset approaches salvage limit.
- When to use DDB instead? — When policy requires stronger front-loaded depreciation.
- Does depreciation affect IRR? — Indirectly through tax cash flows and net project returns.
Common errors
- period must be between 1 and life
Use cases
- Fixed-rate depreciation
- Tax calculations
- Asset management
Frequently asked questions
- What is the DB function in Excel? DB calculates depreciation using the declining-balance method. It's a financial function that determines how much an asset depreciates over a specific period, useful for accounting and tax calculations.
- How is DB different from DDB in Excel? DB uses the declining-balance method with a specified rate, while DDB (Double Declining Balance) uses double the straight-line rate. DB gives you more control over the depreciation rate.
- What parameters does the DB function require? DB requires: cost (initial value), salvage (end value), life (useful life periods), period (specific period to calculate), and optionally month (months in first year).
Editorial review
- Reviewed by Excel.Directory Editorial Team. Updated May 2026.
When to use DB
- Fixed-rate depreciation — common Financial scenario for DB.
- Tax calculations — common Financial scenario for DB.
- Asset management — common Financial scenario for DB.
DB in the Financial category
- Browse all Financial functions at /categories/financial/ for related formulas.
- DB syntax: =DB(cost, salvage, life, period, [month])
- cost (required): Initial cost of asset
- salvage (required): Value at end of depreciation
- life (required): Number of periods
- period (required): Period to calculate depreciation for
- Confirm DB arguments match the syntax shown above before filling down.
- Lock table and range references with $ when copying formulas across rows or sheets.
Formula checklist before you copy down
- Confirm DB arguments match the syntax shown above before filling down.
- Lock table and range references with $ when copying formulas across rows or sheets.
- If results look wrong, check for text stored as numbers and invisible spaces with TRIM.
- Spot-check three known input rows manually against expected output.
Related Excel functions
- SLN (/functions/sln/): Returns the straight-line depreciation of an asset for one period.
- DDB (/functions/ddb/): Returns the depreciation of an asset using the double-declining balance method.
- SYD (/functions/syd/): Returns the sum-of-years' digits depreciation of an asset for a specified period.
Errors to watch for
- period must be between 1 and life — review causes on linked error pages in the directory.
Copy-paste audit workflow
- Enter DB on three test rows with known expected output documented on a QA tab.
- Fill down only after absolute references are locked on lookup tables and rate tables.
- Compare against manual calculation or a calculator for financial and statistical functions.
- Search this directory for comparison guides when choosing between similar functions in the same category.
DB worked examples to copy
- =DB(10000, 1000, 5, 1) — First year depreciation. Expected result: },,690.
DB reference summary for crawlers and offline review
- DB belongs to the Financial category in Excel. Returns the depreciation of an asset using the fixed-declining balance method.
- Full syntax: =DB(cost, salvage, life, period, [month]). Open /functions/db/ for parameters, FAQs, and related pages.
- Common mistakes: period must be between 1 and life
- Pair this function with comparison guides when another Excel formula might fit the same task better.
- Review fix-excel-formula-errors when unexpected errors appear after upgrading Excel or sharing across locales.