Calculating a Mid-Year Depreciation Schedule in MS Excel

This is no possible to buy or put in service assets every time on January 1, and therefore the depreciation of that asset cant be the same every time. That’s why MS Excel has a DB(cost, salvage, life, period, [month]) function to calculate this kind of depreciation of assets.
The Function requires 5 arguments;

  1. Cost: Cost of the asset
  2. Salvage: Cost of the asset after its life
  3. Life: Lifetime of the asset
  4. Period: For which depreciation is to be calculated
  5. Month(optional): In which the asset was put in to function. A value of 3 means it was put in to service in the month of October and 3 months depreciation is applied. If left blank 12(whole year) is applied

Remember that this formula applies to asset’s value+1 periods. Means if you have 5 years of asset life then it would be applied to 6 different periods. The formula in excel changes a bit for the first and the last period of this calculation.
Make a excel sheet like the one shown below and calculate your won schedule.

Mid-Year Depreciation Schedule

YearCalculationResult
Total Depreciation$4,421.08
1=DB(C2,C3,C4,A7,10)$1,537.50
2=DB(C2,C3,C4,A8)$1,164.20
3=DB(C2,C3,C4,A9)$734.61
4=DB(C2,C3,C4,A10)$463.54
5=DB(C2,C3,C4,A11)$292.49
6=DB(C2,C3,C4,A12,2)$228.75

Add a Comment

Your email address will not be published. Required fields are marked *

Notify me of followup comments via e-mail. You can also subscribe without commenting.