Computes the straight line depreciation allowance of an asset for any given period.
Syntax:
SLN(cost:number, salvage:number, life:number)
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, eg 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.
The following formula is used by SLN
:
depreciation = (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).