# DDB Function: Calculate Depreciation Using the Double-Declining Balance Method

In excel, there are 5 types of depreciation functions that can be used to calculate the depreciation value of an asset. In this blog post, we will be discussing these functions. Let’s begin!

## Step-by-Step Guide to SLN Function

SLN function stands for straight-line function. Here is how to use the SLN function in Excel to calculate depreciation value.

1. Create a new excel sheet and input the cost of the asset, the residual value, and the useful life of the asset in their respective cells.
2. In the cell you want to perform the SLN function, input the formula “=SLN(cost, residual value, useful life)”.
3. In our case, the formula will be =SLN(\$B\$2, \$B\$3, \$B4\$4). Note that the \$ is added to make the cell an absolute reference. Press Enter to obtain the result. 4. Drag the formula down the column to calculate the depreciation value for each year.

## Step-by-Step Guide to SYD Function

SYD function stands for Sum of Years’ Digits. Here is how to use the SYD function in Excel to calculate depreciation value.

1. In the cell you want to perform the SYD function, input the formula “=SYD(cost, residual value, useful life, period)”.
2. In our case, the formula will be =SYD(\$B\$2, \$B\$3, \$B4\$4, A7). Press Enter to obtain the result. 3. Drag the formula down the column to calculate the depreciation value for each year.

## Step-by-Step Guide to DB Function

DB function stands for Declining Balance. Here is how to use the DB function in Excel to calculate depreciation value.

1. In the cell you want to perform the DB function, input the formula “=DB(cost, residual value, useful life, year, [month])”.
2. In our case, the formula will be =DB(\$B\$2, \$B\$3, \$B4\$4, A7). 3. Drag the formula down the column to calculate the depreciation value for each year.

## Step-by-Step Guide to DDB Function

DDB function stands for Double Declining Balance. Here is how to use the DDB function in Excel to calculate depreciation value.

1. In the cell you want to perform the DDB function, input the formula “=DDB(cost, residual value, life, period, [factor])”.
2. In our case, the formula will be =DDB(\$B\$2, \$B\$3, \$B4\$4, A7). 3. Drag the formula down the column to calculate the depreciation value for each year.

## Step-by-Step Guide to VDB Function

VDB function stands for Variable Declining Balance. Here is how to use the VDB function in Excel to calculate depreciation value.

1. In the cell you want to perform the VDB function, input the formula “=VDB(cost, residual value, life, start period, end period, [factor], [no switch])”.
2. In our case, the formula will be =VDB(\$B\$2, \$B\$3, \$B4\$4, A7-1, A7). 3. Drag the formula down the column to calculate the depreciation value for each year.

## Conclusion

The step-by-step guide provided in this article can be used as a reference when using these functions in excel. Following these instructions, you can easily and accurately calculate an asset’s depreciation value in Excel.