How to Use the SLN Function in Excel
Today, we’ll delve into the SLN function, a valuable financial tool found in both Microsoft Excel and Google Sheets. The SLN function is designed to compute the straight-line depreciation of an asset for a single period. This method distributes the cost of an asset evenly across its useful life.
How SLN Works
The syntax for the SLN function is consistent across both Excel and Google Sheets:
SLN(cost, salvage, life)cost: The purchase price of the asset.salvage: The residual value of the asset at the end of its operational life.life: The duration (in periods) over which the asset will be depreciated.
Examples of Using SLN Function
Consider a scenario where a company buys a machine for $10,000, expecting it to have a salvage value of $2,000 after 5 years. To compute the machine’s annual straight-line depreciation, we apply the SLN function.
| Asset | Value |
|---|---|
| Cost | $10,000 |
| Salvage Value | $2,000 |
| Life | 5 years |
To perform the calculation, use the following formula:
=SLN(10000, 2000, 5)The function returns $1,600, indicating an annual depreciation of $1,600 over the asset’s 5-year life span.
Implementing SLN in Excel and Google Sheets
Integrating the SLN function into Excel and Google Sheets is straightforward:
Excel:
- Select the desired cell for the result.
- Type
=SLN(. - Input the asset’s cost, followed by a comma.
- Add the salvage value, followed by another comma.
- Specify the asset’s lifespan in years.
- Close the bracket and press Enter.
Google Sheets:
- Click on the target cell.
- Begin entering
=SLN(in the formula bar. - Insert the asset’s cost, followed by a comma.
- Input the salvage value, add a comma.
- Enter the number of years for the asset’s life.
- Hit Enter to complete the calculation.
The SLN function simplifies the process of calculating straight-line depreciation, ensuring accuracy in financial reporting and compliance with tax regulations.
More information: https://support.microsoft.com/en-us/office/sln-function-cdb666e5-c1c6-40a7-806a-e695edc2f1c8
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