# Creating an Double Declining Balance Depreciation Schedule in Excel

The Double Declining Balance method provides an accelerated depreciation schedule.
Calculation of this method is quite interesting. For example You are buying something for \$5000, it has life of 5 years and after that time it would be worth of \$500.
If you calculate this in Straight Line Depreciation method then the asset’s annual depreciation will be 20% of the asset’s cost – salvage, i.e. (\$5000-\$500)*20%=\$900.
But with Double Declining Balance Depreciation method first year’s would be \$5000*(20%)*2(for double)=\$2000.
The following table will help you understand how Double Declining Balance Depreciation Schedule is calculated.

## Double Declining Balance Depreciation Schedule

PeriodCalculationResult
Total\$4,500.00
First Year5000X40%\$2,000.00
Second Year3000X40%\$1,200.00
Third Year1800X40%\$720.00
Fourth Year1080X40%\$432.00
Fifth YearRest of the value\$148.00
Calculating Double Declining Balance Depreciation Schedule in Excel is much easier(Excel is built for that of course!) than you think. You will need 5 Parameters(4 mandatory and 1 optional).

1. Cost: Cost of the asset.
2. Salvage: Asset’s value after its life.
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