How to Calculate Double-Declining Depreciation with DDB in Excel

Write off a design agency’s laptop fleet quickly with double-declining balance, try a 150% factor, and compare with straight-line.

You will learn to

• Calculate double-declining depreciation
• Change the factor to 150%
• Compare accelerated and straight-line charges

How it works

Double-declining balance depreciation charges twice the straight-line rate on the remaining book value. In Excel, =DDB(36000,3000,4,1) returns $18,000 in year 1 for $36,000 of laptops with a four-year life — half the cost, because 2 ÷ 4 = 50%.

The optional factor changes the multiple: 1.5 gives 150% declining balance. DDB never depreciates below salvage value. Comparing year 1 with SLN shows how much extra expense accelerated depreciation pulls forward.

=DDB(B2,B3,B4,1)