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How to Use DDB Function in Excel



1st Step : To Know Double declining balance method of depreciation

Without knowing double declining balance method of depreciation, you can not understand the DDB Function in excel. Actually, excel's DDB Formula automates the calculation of depreciation under double declining balance method. If you want to learn it, you can learn at here.

2nd Step : Write Few Important Information

DDB Function is used on the basis of data. In this data, you should write initial cost of asset, useful life of asset and period. Period may be first year or other year which is needed for calculation.

3rd Step : Apply the Function

You can apply the function by using financial function DDB. Just go to insert in ms excel, then go to function and then choose financial. After this click DDB. You will see a pop up window. Write initial cost in its first box, in second box, write useful life. In third box, you will write write period. In fourth box, you will write factor. In default, you will write 2. This indicate the double of normal rate of depreciation.  Above video will clear all your doubts relating to ddb function in excel.

 

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