Calculate the depreciation of an asset on a straight-line basis
The SLN Function will calculate the depreciation of an asset on a straight-line basis for one period. In financial modeling, the SLN function helps calculate the straight line depreciation of a fixed asset when building a budget.
Learn more about various types of depreciation methods.
=SLN(cost, salvage, life)
The SLN function uses the following arguments:
The straight-line depreciation method subtracts a fixed amount from the value of an asset during each period of the asset’s lifetime.
To understand the uses of the SLN function, let’s consider an example:
Suppose we are given the following data and we need to calculate the depreciation using the straight-line method:
To calculate the straight-line depreciation, we will use the following formula:
We get the result below:
$3,750 would be the depreciation to charged yearly for the given asset.
If the asset was purchased in the middle of the year after the start of the financial year, the depreciation would be charged on a pro-rated basis.
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