Returns the straight-line depreciation of an asset for a single period. Calculates depreciation using the simplest method where the asset's value decreases by an equal amount each year over its useful life. Essential for fixed asset accounting, tax calculations, and financial reporting.
Master the fundamentals of Excel SLN function
The SLN (Straight-Line) function calculates depreciation using the straight-line method, where an asset's depreciable value is allocated equally over its useful life. This is the simplest and most commonly used depreciation method in accounting. SLN divides the depreciable value (cost minus salvage value) by the useful life to determine a constant depreciation expense per period. Unlike accelerated methods (DDB, SYD) that front-load depreciation, SLN provides equal expense recognition each year, matching depreciation to usage when asset benefits are consumed uniformly. This method is required for certain assets under accounting standards and is preferred for assets with consistent utility over their life.
SLN calculates the same depreciation expense for every period. Formula: Depreciation = (Cost - Salvage) / Life. Simple, predictable, and uniform.
SLN is the simplest depreciation method - easy to calculate, understand, and apply. Requires only three inputs: cost, salvage value, and useful life.
Best for assets where benefits are consumed uniformly over time. Matches expense to usage when utility is consistent. Preferred for many asset types.
Required for some asset types under accounting standards. Often mandated for financial reporting consistency and comparability.
SLN provides lower early-year depreciation than DDB or SYD, but higher later-year depreciation. Cumulative depreciation is same for all methods.
Consistent depreciation aids budgeting, forecasting, and planning. Predictable annual expense simplifies financial analysis and reporting.
Function-specific parameters
Function-specific return type
Calculate depreciation for company fixed assets
Prepare depreciation for financial statements
Calculate tax depreciation where required
Plan depreciation expenses for budgets
Track asset value over time
Analyze asset costs and expenses
Exact matching required
Returns numeric position
Handles missing text gracefully
=SLN(cost, salvage, life)The initial cost of the asset. Must be positive. This is the original purchase price or acquisition cost of the asset.
The value of the asset at the end of its useful life (salvage value, scrap value, or residual value). Must be >= 0. Typically lower than cost.
The number of periods over which the asset is depreciated (useful life). Must be positive. Often expressed in years but can be months for fractional year depreciation.
The depreciation expense per period (positive value)
Description: Calculates straight-line depreciation per period
Calculate annual depreciation for office equipment
Returns $4,500 annual depreciation. Each year the asset depreciates by the same amount ($45,000 depreciable value / 10 years = $4,500/year).
Using SLN function in VBA through WorksheetFunction
Sub SLNExample()
Dim result As Double
Dim cost As Double, salvage As Double, life As Integer
cost = 50000
salvage = 5000
life = 10
result = Application.WorksheetFunction.Sln(cost, salvage, life)
Range("A1").Value = result
Range("A1").NumberFormat = "$#,##0.00"
MsgBox "Annual depreciation: quot; & Format(result, "#,##0.00")
End Sub
' Calculate depreciation for multiple assets
Sub CalculateMultipleAssets()
Dim i As Integer
Dim cost As Double, salvage As Double, life As Integer
Dim depreciation As Double
For i = 1 To 10
cost = Range("A" & i).Value
salvage = Range("B" & i).Value
life = Range("C" & i).Value
depreciation = Application.WorksheetFunction.Sln(cost, salvage, life)
Range("D" & i).Value = depreciation
Range("D" & i).NumberFormat = "$#,##0.00"
Next i
End Sub
' Build complete depreciation schedule
Sub BuildDepreciationSchedule()
Dim cost As Double, salvage As Double, life As Integer
Dim i As Integer
Dim depreciation As Double
Dim accumulated As Double
Dim bookValue As Double
cost = 50000
salvage = 5000
life = 10
accumulated = 0
bookValue = cost
For i = 1 To life
depreciation = Application.WorksheetFunction.Sln(cost, salvage, life)
accumulated = accumulated + depreciation
bookValue = bookValue - depreciation
Range("A" & i + 1).Value = i
Range("B" & i + 1).Value = depreciation
Range("C" & i + 1).Value = accumulated
Range("D" & i + 1).Value = bookValue
Range("B" & i + 1).NumberFormat = "$#,##0.00"
Range("C" & i + 1).NumberFormat = "$#,##0.00"
Range("D" & i + 1).NumberFormat = "$#,##0.00"
Next i
End Sub
' Compare depreciation methods
Sub CompareDepreciationMethods()
Dim cost As Double, salvage As Double, life As Integer
Dim sln As Double, ddb As Double, syd As Double
cost = 50000
salvage = 5000
life = 10
sln = Application.WorksheetFunction.Sln(cost, salvage, life)
ddb = Application.WorksheetFunction.DDb(cost, salvage, life, 1)
syd = Application.WorksheetFunction.Syd(cost, salvage, life, 1)
Range("A1").Value = "SLN: quot; & Format(sln, "#,##0.00")
Range("A2").Value = "DDB (Year 1): quot; & Format(ddb, "#,##0.00")
Range("A3").Value = "SYD (Year 1): quot; & Format(syd, "#,##0.00")
End SubCalculate depreciation for company assets
Generate consistent annual depreciation expenses
Plan depreciation for financial budgets
Prepare depreciation for income statements
Calculate depreciation for tax purposes
Track asset values over time
SLN returns #NUM! error
=SLN(50000, 5000, 10)Solution: Check: 1) Life > 0 (cannot be zero or negative), 2) Salvage >= 0 (cannot be negative), 3) All numeric values are valid. Verify life is positive number.
SLN returns unexpected depreciation amount
=SLN(50000, 5000, 10)Solution: Verify: 1) Cost and salvage values are correct, 2) Life is in correct units (years, months, etc.), 3) Formula is (cost - salvage) / life. Check decimal places and units.
SLN returns zero depreciation
=SLN(50000, 50000, 10)Solution: This occurs when cost equals salvage value (no depreciable value). Check: 1) Salvage value too high relative to cost, 2) Data entry errors. Verify cost > salvage.
SLN returns #VALUE! error
=SLN(A1, B1, C1)Solution: Non-numeric values in parameters. Check: 1) All parameters are numbers, 2) Cell references contain numeric values, 3) No text in cost, salvage, or life. Verify inputs are valid numbers.
Salvage value appears higher than cost
=SLN(50000, 60000, 10)Solution: Salvage should be less than cost for normal depreciation. Check for data entry errors. If salvage > cost, function returns negative result, which may indicate appreciation rather than depreciation.