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# VDB Function in Excel

## VDB Function in Excel

The VDB function in Excel returns the depreciation of an asset for any period specified, including partial periods, using the double-declining balance method or some other method that we specify.

VDB stands for variable declining balance.

### Syntax

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

Arguments:

• CostÂ â€“ The initial cost of the asset.
• SalvageÂ â€“ The value at the end of the depreciation. This value can be 0.
• LifeÂ Â Â Â â€“ The number of periods over which the asset is depreciated.
• Start_periodÂ Â Â Â â€“ The starting period for which you want to calculate the depreciation. Start_period must use the same units as life.
• End_periodÂ Â Â Â â€“ The ending period for which you want to calculate the depreciation. End_period must use the same units as life.
• FactorÂ Â Â Â Optional.

The factor is the rate at which the balance declines. If the factor is omitted, it is assumed to be 2 (the double-declining balance method). Change factor if you do not want to use the double-declining balance method.

• No_switchÂ Â Â Â Optional.

No switch is the logical value that specifies whether to switch to straight-line depreciation when depreciation is greater than the declining balance calculation.

## Possible Errors and Usage Notes

• When no_switch is TRUE, the function does not switch to straight-line depreciation even when the depreciation is greater than the declining balance calculation.
• When no_switch is FALSE or omitted, the function switches to straight-line depreciation when depreciation is greater than the declining balance calculation.

## How to use the VDB function in Excel?

Using this function in a Worksheet is simple; all you need to do is enter the function as a formula of the cell in the formula bar.

Take a look at the given example

To find the Variable declining balance of the given data on the first day, enter the numbers in columns A, B and C, and in the column, D enter the following formula,

Formula: = VDB(A1,B1,C1*365,0,1)

Here, A1 refers to the cell name or the cell address. When entered, the function gives you the Variable declining balance of the given data.

Letâ€™s say we are finding the Depreciation between the tenth month and the eighteenth month using a factor of 3.5 instead of the double-declining balance method. Â Then, enter the following formula,

Formula: =VDB(A1, A2, A3*12, 10, 18, 3.5)

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• November 23, 2021