The fixed-declining balance method computes depreciation at a fixed rate.

The double-declining balance method computes depreciation at an accelerated rate.

Depreciation is highest in the first period and decreases in successive periods

cost
The initial cost of the asset
salvage
The value at the end of the depreciation (sometimes called the salvage value of the asset). This value can be 0
life
The number of periods over which the asset is being depreciated (sometimes called the useful life of the asset)
period
The period for which you want to calculate the depreciation. Period must use the same units as life. Must be between 1 and life (inclusive)
factor
(Optional) The rate at which the balance declines. If factor is omitted, it is assumed to be 2 (the double-declining balance method)

© Vincent Chido King - Master Black Belt L6S

2026