In Excel, there is a built-in function called “SLN” that can be used to calculate the depreciation of an asset over a period of time using the straight-line method. This blog post will guide you through the process of using the SLN function in Excel to calculate the depreciation value of an asset.
The SLN function in Excel requires three arguments:
- Cost: The initial cost of the asset.
- Residual value: The value of the asset at the end of its useful life.
- Life: The number of periods over which the asset is depreciated.
Create a new excel sheet and input the asset’s cost, residual value, and the asset’s useful life in their respective cells. Then follow the below steps:
- In the cell where you want to perform the SLN function, input the formula “=SLN(cost, residual value, life)”. For example, in our case, the formula will be =SLN($B$2, $B$3, $B4$4). Note that the $ is added to make the cell an absolute reference.
- Press Enter to obtain the result.
- Drag the formula down the column to calculate the depreciation value for each year.
By following these simple steps, you can easily calculate an asset’s depreciation over time using the SLN function in Excel. We hope this guide has been helpful in helping you understand how to use the SLN function in Excel. If you have any questions, feel free to leave them in the comments below! Thanks for reading!