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Learn calculate Straight line Depreciation in Excel by using Formula.

SLN

How to calculate Straight line Depreciation in Excel by using SLN Formula

 

What Does It Do ?
This function calculates the Straight Line Depreciation of an item.
(Also known as Fixed Instalment method).
The Straight Line Depreciation is how much the value of an item reduced during a specific
period of time. The result is a uniform depreciation value.

An example would be if you bought a new car for £20,000, then kept it for 6 years.
At the end of your ownership you sell the car for £8,000.
The difference between the original and the trade in price is £20,000 – £8,000 which is £12,000.
Because you owned the car for 6 years, the SLN is calculated as £12,000 / 6 which is £2,000.

Syntax
=SLN(OriginalCost,SellingPrice,LengthOfOwnership)
The Length Of Ownership can be any time period, days, months or years.
However, the SLN which is calculated will, be for that time, specifying 2 years ownership
as 24 months will give an SLN per month.

Formatting

No special formatting is needed.

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