The SLN function calculates the depreciation of an asset for one period using the straight-line method.
The Straight-line method of depreciation applies even cost throughout the life of the fixed asset.
Depreciation calculated by the Straight Line Method uses any of the following formulas:
1. (Cost – Salvage Value)/ Periods of the asset in years.
2. (Cost – Salvage Value) X Rate of Depreciation.
The straight-line method reflects the usage pattern for a given asset. You can use this method when there are no particular patterns for the asset to be used during the useful life period.
SLN function is an inbuilt function in Excel. This function falls under the category of Financial Functions. This function can be used as a worksheet as well as a VBA function.
As a worksheet function, you can enter this function as part of a formula in a cell.
As a VBA function, you can use it in macro code. You can enter the function through the Microsoft Visual Basic Editor.
The syntax for SLN Function
=SLN(Cost, Salvage, Life)
Arguments
Cost: Initial cost of the asset.
Salvage: Salvage value of the asset. Salvage value means the scrap value of an asset at the end of the depreciation.
Life: Useful life of the asset. Mostly, life value is in years. To find partial SLN you need to divide the N by 12 (n/12).
We have created the infographics for the SLN Function. With the help of these infographics, you can easily learn step by step process for using this excel functions.
Furthermore, Excel consists of many inbuilt functions which are helpful in the analytical and statistical study of number.
Simply follow the instructions in the infographics below:
Errors
#DIV/0! the error occurs when life = 0.
#VALUE! the error occurs when any given argument is non-numeric.
To learn other functions like CUMPRINC, ACCRINTM and PRODUCT Functions, please click on the name of the function.
We have created a simple and easy Depreciation Calculator with predefined formulas. Just enter a few values and it will automatically calculate depreciation by both the methods.
We thank our readers for liking, sharing and following us on different social media platforms.
If you have any queries please share in the comment section below. I will be more than happy to assist you.
Leave a Reply