DECLINING_BALANCE

Arithmetic declining balance method

Description

Calculates an assets depreciation over a period of time utilising the arithmetic declining balance method.

Function signature

DECLINING_BALANCE(cost: Number, salvage: Number, life: Number, period: Number, month: Number = 12) => Number

Parameter

Description

Cost

The initial cost of the asset

Salvage

The value of the asset at the end of depreciation

Life

The number of periods over which the asset is depreciated

Period

The single period within life for which to calculate depreciation

Month

The number of months in the first year of depreciation

Examples

Formula

Return value

DECLINING_BALANCE(750, 60, 5, 4)

65.28

DECLINING_BALANCE(750, 60, 5, 5)

39.37

DECLINING_BALANCE(750, 60, 6, 5)

47.78

DECLINING_BALANCE(750, 100, 5, 4)

74.22

DECLINING_BALANCE(1000, 100, 5, 4)

92.71

DECLINING_BALANCE(1000, 100, 5, 4, 12)

92.71

DECLINING_BALANCE(1000, 100, 5, 4, 1)

142.4