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  • Jan 15, 2026

Excel Depreciation for Part of the Year

When working with financial years and depreciation you often have the situation where the asset being purchased has been purchased during the year and not at the start of the year. Here’s a function that calculates fixed declining balance depreciation and handles part year depreciation.

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  • Reading time:1 min read

The DB function has an optional fifth argument that allows you to specify how many months did appreciate in the first year.

In the image below you can see the DB function being used in cell B9.

This formula spills down to match the spill range in cell A9.

The formula in cell A9 is a spill range that returns the number of years plus one. It uses the SEQUENCE function. This handles the fact that there is part depreciation in the first and last year.

As you can see that appreciation is higher in the first years as it uses fixed declining  balance depreciation.

The first four arguments in the function are the standard four arguments for depreciation cost, salvage value, life and period. Life and period need to be the same units.

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