How to use the SLN function to return the straight-line depreciation of an asset for one period

Question:     How do I calculate the depreciation for an asset using the straight line method?

Answer:        By using the SLN function

Why:            To return the straight-line depreciation of an asset for one period

Applies To: Excel 2003, 2007 and 2010

1. Reference is made to the example in the following screen shot

2.         Select B6 and type =SLN(B2,B3,B4)

3.       The depreciation allowance for each year is \$3,000.00

Syntax

SLN(cost,salvage,life)

Cost is the initial cost of the asset

Salvage is the value at the end of the depreciation (sometimes called the salvage value of the asset)

Life is the number of periods over which the asset is depreciated (sometimes called the useful life of the asset)

If you have any suggestions for an Excel Tips & Tricks topic, or you would like help with a particular function, please email [email protected] and yours could be the next Tip of the Week.