In this video, we will be learning about the VDB function in Excel. This is a depreciation function that can be used to calculate the value of an asset at a given time. It can be helpful for businesses that want to keep track of their assets and depreciation over time.
We will walk through how to use this function step by step, and show some examples of how it can be used in practice. Stay tuned for more tips and tricks on using Excel!
Table of Content;
00:23 VDB Function in Excel
What Is VDB Function in Excel?
Lets see and understand the syntax of VDB Function in excel as follows;
VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])
cost = is the original cost of the asset;
salvage = is the value of the asset at the end of its life;
life = is the number of periods over which the asset will be depreciated;
start_period = is the period in which depreciation on an asset begins;
end_period = is the last period for which depreciation is to be calculated;
factor = optional – allows you to adjust the rate at which depreciation is applied (e.g. if cost and salvage are in different currencies);
no_switch) = optional – specifies that the VDB function should not switch from declining balance to straight line depreciation.
VDB Function Example
Now that we know the syntax, let's go ahead and see how to use it in practice with an example.
Suppose we have the following data on an asset:
- cost = $100,000
- salvage = $0
- life = 50 years
- start_period = year 0
- end_period = year 49
To calculate the value of the asset at the end of year 25, we would use the following formula:
VDB($100,000, $0, 50, 0, 25)
This would return a value of $21,625.52. If we wanted to calculate the value of the asset at the end of year 30, we would use the same formula but with a different end_period:
VDB($100,000, $0, 50, 0, 30)
This would return a value of $15,702.80.
As you can see, the VDB function can be a helpful tool for businesses that want to keep track of their assets and depreciation over time. Stay tuned for more tips and tricks on using Excel!
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