Financial
Straight-Line Depreciation
Calculate the annual depreciation of an asset using the straight-line method. This evenly distributes the cost of an asset over its useful life.
Excel Formula
=SLN(A2, B2, C2)Step-by-Step Explanation
1
SLN calculates straight-line depreciation for one period
2
A2 is the original cost of the asset
3
B2 is the salvage value (value at end of life)
4
C2 is the useful life in periods (years)
5
Result is the depreciation amount per period
Example
| Cost (A) | Salvage Value (B) | Life Years (C) | Annual Depreciation (D) |
|---|---|---|---|
| $50,000 | $5,000 | 10 | $4,500 |
| $120,000 | $20,000 | 5 | $20,000 |
Result: Formula in D2: =SLN(A2,B2,C2) → $4,500
Common Variations
Without SLN function
=(A2-B2)/C2Manual calculation
Double-declining balance
=DDB(A2,B2,C2,D2)Accelerated depreciation method
Sum-of-years digits
=SYD(A2,B2,C2,D2)Another accelerated method
Need a Custom Version?
Use our AI generator to create a formula tailored to your specific data and requirements.
Try It with AI →