Formulas > =VDB()

# How To Use VDB() Function in Google Sheets

Description

Returns the depreciation of an asset for a particular period (or partial period).

Common questions about the VDB formula include:
• How do I use the VDB formula and what does it do?
• What parameters are needed when using the VDB formula?
• What is the syntax for the VDB formula?
The VDB formula is a financial formula for calculating the present value of a series of future cash flows. It can be used to determine the potential worth of an investment or to compare multiple alternatives against each other.

The VDB formula can be appropriately used to compare multiple investments, forecast future cash flows, and compare multiple investments to a single investment.

The VDB formula can be commonly mistyped as VD or VDP rather than VDB.

Some common ways the VDB formula is used inappropriately include entering incorrect starting or ending points, not accounting for taxes, using an incorrect interest rate, or using the formula to calculate the future value rather than the present value.

Common pitfalls when using the VDB formula include forgetting to factor in inflation, not incorporating taxes, and not properly considering the time value of money.

Common mistakes when using the VDB formula include forgetting to factor in inflation, not accounting for taxes, thinking that VDB is intended to calculate future values, using incorrect starting or ending points, and using an incorrect interest rate.

Common misconceptions people might have with the VDB formula include thinking that VDB is intended to calculate future values and that VVP (Variance-reduced Variance-payable) and VDB are interchangeable.

How To Actually Use VDB() in Sheets

`VDB(cost, salvage, life, start_period, end_period, [factor], [no_switch])`

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