What is the syntax for SLN in Excel?

The syntax for SLN is: =SLN(cost, salvage, life)

How does straight-line depreciation work?

SLN divides the depreciable amount equally across all periods: (Cost - Salvage) / Life. For a $10,000 asset with $1,000 salvage over 5 years: ($10,000 - $1,000) / 5 = $1,800 per year. Simple and consistent.

When should I use SLN vs DDB or SYD?

Use SLN for simple, equal depreciation each period. Use DDB (double-declining) or SYD (sum-of-years) for accelerated depreciation that's higher in early years. Accelerated methods are often better for tax purposes and assets that lose value quickly.

How do I create a depreciation schedule?

For SLN, each period is the same: =SLN(cost, salvage, life). Create a table with periods 1 to life, depreciation (same each row), and cumulative depreciation. Book value = Cost - Cumulative Depreciation.

Financial

SLN Function in Excel

Returns the straight-line depreciation of an asset for one period.

Syntax

=SLN(cost, salvage, life)

Arguments

cost (required): Initial cost of asset
salvage (required): Value at end of depreciation
life (required): Number of periods

Examples

=SLN(10000, 1000, 5) - Annual depreciation - Result: $1,800

SLN modeling tips

Align rate and period units (annual rate ÷ 12 for monthly models).
Use consistent cash-flow signs (outflows negative, inflows positive).
Hub: [Financial functions guide](/guides/excel-financial-functions-guide/).

Common errors

Life must be positive

Use cases

Asset depreciation
Accounting
Tax calculations

Frequently asked questions

How does straight-line depreciation work? SLN divides the depreciable amount equally across all periods: (Cost - Salvage) / Life. For a $10,000 asset with $1,000 salvage over 5 years: ($10,000 - $1,000) / 5 = $1,800 per year. Simple and consistent.
When should I use SLN vs DDB or SYD? Use SLN for simple, equal depreciation each period. Use DDB (double-declining) or SYD (sum-of-years) for accelerated depreciation that's higher in early years. Accelerated methods are often better for tax purposes and assets that lose value quickly.
How do I create a depreciation schedule? For SLN, each period is the same: =SLN(cost, salvage, life). Create a table with periods 1 to life, depreciation (same each row), and cumulative depreciation. Book value = Cost - Cumulative Depreciation.

Editorial review

Reviewed by Excel.Directory Editorial Team. Updated May 2026.