MS Excel: How to use the VDB Function (WS)

This Excel tutorial explains how to use the Excel VDB function with syntax and examples.

Description

The Microsoft Excel VDB function returns the depreciation of an asset for a given time period based on a variable declining balance depreciation method.

The VDB function is a built-in function in Excel that is categorized as a Financial Function. It can be used as a worksheet function (WS) in Excel. As a worksheet function, the VDB function can be entered as part of a formula in a cell of a worksheet.

Syntax

The syntax for the VDB function in Microsoft Excel is:

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

Parameters or Arguments

cost

The original cost of the asset.

salvage

The salvage value after the asset has been fully depreciated.

life

The useful life of the asset or the number of periods that you will be depreciating the asset.

start_period

The starting period that you wish to calculate the depreciation for. Use the same units as for the life.

end_period

The ending period that you wish to calculate the depreciation for. Use the same units as for the life.

factor

Optional. It is the rate to use for the declining balance. If this parameter is omitted, the VDB function will assume a factor of 2.

no_switch

Optional. It can either be a value of TRUE or FALSE. If the no_switch parameter is omitted, the VDB function will assume a no_switch value of FALSE.

Value	Explanation
TRUE	Excel will use the declining balance method of depreciation.
FALSE	Excel will use the straight-line depreciation method when the straight-line depreciation is greater than the declining balance depreciation amount. (default)

Returns

The VDB function returns a numeric value.

Applies To

• Excel for Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000

Type of Function

• Worksheet function (WS)

Example (as Worksheet Function)

Let's look at some VDB examples and explore how to use the VDB function as a worksheet function in Microsoft Excel:

This first example returns the depreciation for an asset that costs $10,000, with a salvage value of $5,000. The useful life of the asset is 5 years. The depreciation is being calculated for the 6th to 12th month time frame. A factor of 2 is used.

=VDB(10000, 5000, 5*12, 6, 12, 2, TRUE)
Result: $1,501.79

This next example returns the depreciation for an asset that costs $10,000, with a salvage value of $5,000. The useful life of the asset is 5 years. The depreciation is being calculated for the 18th to 24th month time frame. A factor of 1 is used.

=VDB(10000, 5000, 5*12, 18, 24, 1, TRUE)
Result: $708.83