# Power Pivot Principles: The A to Z of DAX Functions – DDB

4 April 2023

*In our long-established Power Pivot Principles articles, we
continue our series on the A to Z of Data Analysis eXpression (DAX) functions. This week, we look at **DDB**.*

* *

*The DDB function*

The **DDB **function is one of the financial
functions. It returns the depreciation
of an asset for a specified period using the double-declining balance method or
some other method you specify. It has
the following syntax:

**DDB(cost,
salvage, life, period, [factor])**

It has five [5] arguments:

**cost**: this is required, and represents the initial cost of the asset**salvage**: this is required, and represents the value of the asset at the end of depreciation**life**: this is required, and is the number of periods over which the asset is to be depreciated**period**: this is required, and is the period for which you want to calculate the depreciation. The period must use the same unit as life and its value should be between one [1] and**life**(inclusive)**factor**: this component is optional and represents the rate at which the balance declines. If omitted, it is assumed to be two [2].

It should be further noted that:

- the double-declining balance method calculates depreciation at an accelerated rate. Depreciation is highest in the first period and decreases in successive periods. The formula DDB uses is as follows:

**period**is rounded to the nearest integer- an error will occur if:
**cost**or**salvage**< 0**life**or**period**< 1**period**>**life****factor**≤ 0.- the
**DDB**function is not compatible with Power Pivot and currently it is only compatible with Power BI, SSAS Tabular, Azure AS and SSDT - this function is not supported for use in DirectQuery mode when used in calculated columns or row-level security (RLS) rules.

Suppose we have an initial asset that has
value of 1,000,000 and zero [0] salvage value.
The asset has a useful life of ten [10] years, and we have decided to
use 1.5 as our depreciation factor. Suppose we want to know the depreciation for the fifth [5^{th}] period. We can write the following DAX query:

This will return 78,300.9375: the
depreciation charge in the fifth [5^{th}] period, assuming a value of zero [0] after ten [10] years, using a factor of 1.5.

*Come back next week for our next post on Power
Pivot in the **Blog** section. In the
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Power Pivot blogs **here**.*