Home » Excel-Built-In-Functions » Excel-Financial-Functions » Excel-Sln-Function

# The Excel SLN Function

Straight Line Depreciation

Straight line depreciation is most simple way of calculating the depreciation of an asset.

This method simply subtracts a fixed amount from the value of an asset during each period of the asset's lifetime. Therefore, the straight line depreciation for one period is calculated by the following equation:

where,

- cost = initial cost of the asset (at start of period 1)
- salvage = final value of the asset at the end of its lifetime
- life = number of periods over which the depreciation occurs

## Basic Description

The Excel SLN function calculates the straight line depreciation of an asset for one period.

The format of the function is :

SLN( cost, salvage, life )

where the arguments are as shown in the table below:

cost | - | The initial cost of the asset |

salvage | - | The value of the asset at the end of the depreciation |

life | - | The number of periods over which the asset is to be depreciated |

## SLN Function Examples

The examples below show the SLN function, used to calculate the yearly or monthly depreciation of assets with different cost, salvage and lifetime values.

Formulas: |

Results: |

Further examples of the Excel SLN function can be found on the Microsoft Office website.

## Sln Function Errors

If you get an error from the Excel SLN Function, this is likely to be one of the following :

Common Errors

#DIV/0! | - | Occurs if the supplied life argument is 0 |

#VALUE! | - | Occurs if any of the supplied arguments are not numeric values |