# The Excel SLN Function

Straight Line Depreciation

Straight line depreciation is the 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.
Related Functions:
DB Function
DDB Function

## Function Description

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

The syntax of the function is:

SLN( cost, salvage, life )

where the arguments are:

 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

In the example spreadsheet below, the SLN function is used to calculate the yearly or monthly depreciation of assets with different cost, salvage and lifetime values.

Formulas:
AB
1Straight Line Depreciation:
2=SLN( 10000, 1000, 5 )Initial cost = \$10,000; salvage = \$1,000; lifetime = 5 yrs
3=SLN( 500, 100, 8 )Initial cost = \$500; salvage = \$100; lifetime = 8 yrs
4=SLN( 1200, 200, 6 )Initial cost = \$1,200; salvage = \$200; lifetime = 6 mths
Results:
AB
1Straight Line Depreciation:
2\$1,800.00- Yearly depreciation = (10000 - 100) / 5 = \$1,800
3\$50.00- Yearly depreciation = (500 - 100) / 8 = \$50
4\$166.67- Monthly depreciation = (1200 - 200) / 6 = \$166.67

Further examples of the Excel SLN function are provided on the Microsoft Office website.

## Excel 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 equal to 0. #VALUE! - Occurs if any of the supplied arguments are non-numeric.