The SLN function is a Finance function that calculates the depreciation of an asset on a straight-line basis for one period. In this guide, we’re going to show you how to use the SLN function and go over some tips and error handling methods.
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SLN Function Syntax
|cost||The initial cost of the asset.|
|salvage||The value after the asset has been fully depreciated, salvage value.|
|life||The number of periods over which asset is depreciated, useful life of the asset.|
SLN Function Example
Because all the arguments are required, the usage of the SLN function is straightforward. For example, for an asset with an initial cost of $20,000, a useful life of 5 years, and a salvage value of $4,000, the formula should be as the following:
This formula returns the depreciation value for a single year. The number of the period should match with the period you want to calculate the depreciation.
As you can see the straight-line method assumes that the asset's cost is depreciated the same amount for each accounting period.
The SLN function relies on (cost - salvage) / useful life calculation.
Based on straight line method, the function assumes the depreciation value is equal for each period.
Excel Depreciation Functions
|French declining balance||AMORDEGRC|
|French straight line||AMORLINC|