Straight-line depreciation per year (SLN)
The problem
Problem statement
Cost, salvage value and useful life are in B1, B2 and B3. Put the depreciation charge for one full year in the Yearly depreciation cell D2, rounded to two decimals.
Straight-line means the same charge every year: (cost − salvage) spread over the life, not cost over the life.
Problem data
Show the sheet as a table (selectable, copyable)
| A | B | D | |
|---|---|---|---|
| 1 | Cost | 12000 | Yearly depreciation |
| 2 | Salvage | 2000 | |
| 3 | Life (years) | 4 |
Notes
SLN(cost, salvage, life) does exactly that division. Forgetting the salvage value is the classic error — it overstates every year's charge by salvage ÷ life. Round to cents because a depreciation schedule that does not add up to cost − salvage is a finding in an audit.
How to approach
Your answer goes in D2.
- Target cell is D2
- You need cost minus salvage
- Spread it over the life
- Shape: =ROUND(SLN(?, ?, ?), ?)
Function guide
FAQ
How do I calculate straight-line depreciation?
=SLN(cost, salvage, life) or (cost − salvage) / life. The salvage value must be subtracted first.
Why does my schedule not reach the salvage value?
Salvage was ignored, or each year was rounded in a way that does not sum back. Round once and check the total against cost − salvage.