Straight-line depreciation (SLN) is the most straightforward and common depreciation method. Most accounting departments choose this method due to its simplicity. Further, most fixed assets’ usefulness is consumed at an even rate, so this method reflects the usage of the asset.
See a table comparing the different depreciation amounts using other methods to help choose between them.
Contents
Videos
Purpose of the SLN Function
To return the value of one period of straight-line depreciation expense.
Similar Functions
SYD – Sum-of-the-years digits depreciation
DB – Declining balance depreciation
DDB – Double-declining balance depreciation
Syntax
=SLN(cost,salvage,life)
cost– The acquisition cost of the asset. The cost includes the purchase price and costs associated with its acquisition, such as freight and sales tax.salvage– The amount you expect to receive in exchange for the asset at the end of its useful life. Typically, this is zero. However, an example of a case where this is not zero is an automobile’s expected trade-in value.life– The length of time that the asset is expected to be in service. Stated in the number of periods.
Formula
Examples
Example 1
An automobile is purchased for $40,000, is expected to last 36 months, and be sold for $4,000.
| A | B | C | |
| 1 | Amount | Attribute | Description |
| 2 | $40,000 | cost | acquisition cost |
| 3 | $4,000 | salvage | money back at end of life |
| 4 | 36 | life | number of periods for the useful life |
| Formula | Description | Result |
=SLN(A2,A3,A4) | Depreciation expense each period | $1,000 |
Example 2
You purchase a laptop computer for €3,000 that is expected to last 36 months and have no value after two years.
| Formula | Description | Result |
=SLN(3000,0,36) | Depreciation expense each period | €83.33 |