In the example shown, the formula in C6, copied down, is: where named ranges are “cost” = G4, “salvage” = G5, and  “life” = G6.

Fixed-declining balance calculation

To get a rate to use to calculate depreciation based on fixed-declining balance, Excel uses the following formula: To calculate depreciation in each year, Excel uses a formula like this: However, depreciation for the first and last year is calculated differently to account for the month argument. The table below shows the calculation used to depreciate an asset over 5 years. If 3 is supplied for month, depreciation the first year is based on 3 months only, and depreciation the last year is based on 9 months.

Dave Bruns

Hi - I’m Dave Bruns, and I run Exceljet with my wife, Lisa. Our goal is to help you work faster in Excel. We create short videos, and clear examples of formulas, functions, pivot tables, conditional formatting, and charts.