How Do You Calculate Fixed-Declining Depreciation Using Excel?
Depreciation of an asset is its decrease in value due to wear and tear. Every piece of equipment you use in your home or business depreciates over time. Fixed-declining depreciation decreases in value at a constant rate, and Microsoft Excel can help you calculate that depreciation. Do your homework. To calculate the fixed-declining depreciation of an asset, you will need to know the cost of the asset, its lifespan, its value at the end of its lifespan (sometimes called salvage) and the period of time over which you need to find the depreciation. Build your Excel spreadsheet. In cell A1, enter the title “Original Cost” and in cell B1 enter that cost. In cell A2, enter the title “Salvage” and in cell B2 enter that amount. Enter the heading “Life” in cell A3 and in cell B3 enter the predicted lifespan of the asset in years. Enter the heading “Months” in cell A4 and enter the number 12 in cell B4 since there are 12 months in a year. Click on cell A7 and enter the heading “Period”, and in c
