DOUBLE_DECLINING_BALANCE

Double-declining balance method

Description

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

Function signature

DOUBLE_DECLINING_BALANCE(cost: Number, salvage: Number, life: Number, period: Number, factor: Number = 2) => 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

Factor

The factor by which depreciation decreases (default is 2)

Examples

Formula

Return value

DOUBLE_DECLINING_BALANCE(750, 60, 5, 4)

64.8

DOUBLE_DECLINING_BALANCE(750, 60, 5, 5)

37.2

DOUBLE_DECLINING_BALANCE(750, 60, 6, 5)

49.38

DOUBLE_DECLINING_BALANCE(750, 100, 5, 4)

62

DOUBLE_DECLINING_BALANCE(1000, 100, 5, 4)

86.4

DOUBLE_DECLINING_BALANCE(1000, 100, 5, 4, 2)

86.4

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

102.4