How to Calculate Depreciation for Any Span with VDB in Excel

Depreciate office furniture for one year, a multi-year span or a first part-year, all with one flexible function.

You will learn to

• Depreciate the first year with VDB
• Total depreciation across several years
• Depreciate the first months with a life in months

How it works

VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch]) returns the depreciation between two points in an asset’s life. Periods are measured from 0: the first year is start 0, end 1; years 2 to 4 are start 1, end 4.

By default VDB uses double-declining balance and switches to straight-line once that gives a larger charge, so the asset still reaches salvage value. Give the life in months to depreciate a partial first year month by month.

=VDB(B2,B3,B4,0,1)