# SYD – Sum of the Years Digits Depreciation Function

The sum of the years’ digits (SYD) depreciation method depreciates an asset more quickly during the beginning of its life. Unlike the straight-line method, depreciation expense is different for every depreciation period. Depreciation is greater in the early periods and declines in each successive period.

See a table comparing the different depreciation methods.

## Purpose

To return the value of one period of the sum of the years’ digits depreciation expense.

## Similar Functions

SLN – Straight-line depreciation

DB – Declining balance depreciation

DDB – Double declining balance depreciation

## Syntax

`=SYD(cost,salvage,life,period)`

• `cost` – The acquisition cost of the asset.
• `salvage` – The amount you expect to receive in exchange for the asset at the end of its useful life. Typically, this is zero.
• `life` – The number of periods you expect the asset to be in service. This unit can be months or years.
• `period` – The period for which you are calculating depreciation expense. This must be in the same time unit as `life` (months or years).

## Examples

### Example 1

You purchase an automobile for 36,000, expect it to last three years, and trade it in for 3,000.

### Example 2

Next, let’s say you purchase a laptop computer for €3,000. You expect it to last 36 months and be worth €150 at the end of the two years.

### Live Example in Sheets

In addition to these examples, go to this spreadsheet for a live version of the SYD function.