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Variable Declining Balance Method Depreciation Calculator
Depreciation Schedule
Example - Cost: $575,000.00, Salvage: $5,000.00, Life: 10 years , First Year: 12 months, Factor: 2
Year
|
Book Value
Year Start |
Depreciation
% of Book Value |
Depreciation
Expense |
Accumulated
Depreciation |
Book Value
Year End |
Depreciation
Method Used |
| 1 |
$575,000 |
20.00% |
$115,000 |
$115,000 |
$460,000 |
Declining-Balance |
| 2 |
$460,000 |
20.00% |
$92,000 |
$207,000 |
$368,000 |
Declining-Balance |
| 3 |
$368,000 |
20.00% |
$73,600 |
$280,600 |
$294,400 |
Declining-Balance |
| 4 |
$294,400 |
20.00% |
$58,880 |
$339,480 |
$235,520 |
Declining-Balance |
| 5 |
$235,520 |
20.00% |
$47,104 |
$386,584 |
$188,416 |
Declining-Balance |
| 6 |
$188,416 |
20.00% |
$37,683 |
$424,267 |
$150,733 |
Declining-Balance |
| 7 |
$150,733 |
24.17% |
$36,433 |
$460,700 |
$114,300 |
Straight-Line |
| 8 |
$114,300 |
24.17% |
$36,433 |
$497,134 |
$77,866 |
Straight-Line |
| 9 |
$77,866 |
24.17% |
$36,433 |
$533,567 |
$41,433 |
Straight-Line |
| 10 |
$41,433 |
24.17% |
$36,433 |
$570,000 |
$5,000 |
Straight-Line |
Variable Declining Balance Depreciation Formulas
The variable declining balance calculation is a combined method of the Declining Balance Depreciation Calculator and the Straight Line Depreciation Calculator. The depreciation calculation starts with the declining method. At the period in the life of the asset where the depreciation calculated by the straight line method on the remaining depreciable amount with be greater than the amount calculated by the declining method, you switch to the straight line method for the remainder of the life of the asset.
- Declining Balance:
- Straight-Line Depreciation Percent = 100% / Useful Life
- Depreciation Rate = Depreciation Factor x Straight-Line Depreciation Percent
- Depreciation for a Period = Depreciation Rate x Book Value at Beginning of the Period
- Switching to Straight Line Method:
- Depreciation in Any Remaining Period = ((Cost - Accumulated Depreciation) / Remaining Life)
Microsoft® Excel® Functions Equivalent: VDB
The Excel equivalent function for Variable Declining Balance Method is VDB(cost,salvage,life,start_period,end_period,factor,no_switch). With it you can calculate depreciation for the chosen period. "factor" defaults to 2, double declining method, and no_switch defaults to FALSE, meaning it will switch to the straight line method when it is advantageous. To fully depreciate just by the double declining method you can use our Double Declining Balance Method Depreciation Calculator.
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