The Excel SLN function has the syntax shown below.
SLN (cost, salvage, life)
Cost = The initial cost of the asset
Salvage = The salvage or residual value of the asset
Life = The useful life of the asset
Use of the Excel SLN Function
The Excel SLN function is used to calculate the periodic straight line depreciation of a long term asset.
Straight Line Depreciation SLN Function Example
If a business purchases an asset costing 10,000 which is estimated to have a useful life of 5 years and a salvage value of 600, then the annual straight line depreciation is calculated using the Excel SLN function as follows:
Cost = 10,000 Salvage = 600 Life = 5 years Depreciation = SLN (cost, salvage, life) Depreciation = =SLN (10000,600,5) Depreciation = 1,880
Using the Excel SLN function the straight line depreciation for the asset is calculated as 1,880 a year.
Using the Excel SLN Function for Monthly Periods
In the above example the Excel SLN function was used to calculate the annual depreciation. The function could equally well be used to calculate the monthly depreciation by defining the life in terms of months instead of years.
Suppose for example, the business purchased an asset costing 5,000 with an estimated salvage value of 800 and a useful life of 30 months, then using the Excel SLN function the monthly straight line depreciation is calculated as follows:
Cost = 5,000 Salvage = 800 Life = 30 months Depreciation = SLN (cost, salvage, life) Depreciation = =SLN (5000,800,32) Depreciation = 140
The straight line depreciation is calculated as 140 a month.
The Excel SLN function is one of many Excel finance functions used in financial calculations, discover another at the links below.