Depreciation using Straight Line Method

Charges an equal depreciation to each year of asset's life.

Example:
Cost 1,000,000
Salvage 200,000
Life 5
Depreciation method Straight Line
1 2 3 4
Depreciation charge per year

=SLN(cost, salvage, life)

Returns the straight line depreciation of an asset for a period.
Cost The price paid to purchase the asset.
Salvage The expected residual value (resale price) after the end of useful life.
Life The life for which company has planned to use the asset.
5
Depreciation using Declining Balance Method
Charges higher depreciation in the initial years, with depreciation charge falling each year.

Example:
Cost 1,000,000
Salvage Value 327,680
Life 5
Depreciation method Declining Bal 20%

1 2 3 4 5
NBV at beginning
Depreciation charge
NBV at the end

=DB(cost, salvage, life, period, (MONTH))

Returns the depreciation of an asset for a specified period using fixed-declining balance method.
Cost The price paid to purchase the asset.
Salvage The expected residual value (resale price) after the end of useful life.
Life The life for which company has planned to use the asset.
Period The year you are calculating depreciation for.
Depreciation using Sum of Years Digits Method
Charges higer depreciation in the initial years, and lower in the later years, based on the years' digits.

Cost 1,000,000
Salvage Value 200,000
Life in years 5

=SYD(cost, salvage, life, per)

Returns the sum of digits depreciation of an asset for a specfied period.
Cost The price paid to purchase the asset.
Salvage The expected residual value (resale price) after the end of useful life.
Life The life for which company has planned to use the asset.
Period The year you are calculating depreciation for.
years' digits.
Depreciation using Double Declining Method
Doubling the rate of depreicaiton from straight line method, this method acclerates the depreciation of an asset in the earlier

Example:
Cost 1,000,000
Salvage Value 200,000
Life 5
Depreciation method Double declining method
1 2 3 4 5
NBV at the beginning
Depreciation
NBV at the end

=DDB(cost, salvage, life, period, factor)

Returns the depreciation of an asset for a specified period using double declining balance method or some other method you
Cost The price paid to purchase the asset.
Salvage The expected residual value (resale price) after the end of useful life.
Life The life for which company has planned to use the asset.
Period The year you are calculating depreciation for.
Factor The double or other multiplication factor.
preciation of an asset in the earlier years.

method or some other method you specify.

Depreciation using Variable Declining Method
This is a double declining balance and straight line combined method, where you can switch to straight line if DDB balance for

Cost 1,000,000
Salvage Value 200,000
Depreciation : Double Declining Balance 40%
Life in years 5
Current Period 1 2 3 4 5
NBV at the beginning 1,000,000 600,000 360,000 216,000 200,000
Depreciation 400,000 240,000 144,000 16,000 -
NBV at the end 600,000 360,000 216,000 200,000 200,000

=VDB(cost, salvage, life, start_period, end_period, factor, no_switch)

Returns depreciation of an asset for any period you specify, including partial periods, using double declining method, or some
Cost The price paid to purchase the asset.
Salvage The expected residual value (resale price) after the end of useful life.
Life The life for which company has planned to use the asset.
Start_period The period from which you are calculating the depreciation.
End_period The period upto which you are calculating the depreciation.
Factor The double or other multiplication factor.
No_switch The command to conditionally switch to Straight line.
itch to straight line if DDB balance for a period is below the straight line.

ctor, no_switch)
ng double declining method, or some other method you specify.