Calculates the straight line depreciation allowance of an asset for any given period.
Syntax:
SLN(cost:number, salvage:number, life:number)
where:
cost | is the original value of the asset; |
salvage |
is the predicted future value at the end of the depreciation period. Both cost and salvage must be presented in the same format, e.g. both in the same currency; |
life | is the period for which depreciation is being calculated. |
The result returned is the straight line depreciation of the asset over the specified period.
Formula:
SLN = (cost − salvage) ÷ life
Example:
You buy a computer for £1000 with a salvage value of £100 in five years. In any given year the depreciation allowance will be returned by the following formula:
SLN(1000, 100, 5)
which returns the number 180
(pounds).