What's the difference between SLN and DDB or SYD depreciation methods?

SLN (straight-line) divides total depreciable cost evenly across all periods. DDB and SYD are accelerated methods that depreciate more in early years and less in later years. Use SLN for simplicity and consistent annual expense; use DDB or SYD if tax or accounting rules require front-loaded depreciation.

Can I use SLN for monthly or quarterly depreciation instead of annual?

Yes. If your life is stated in years, divide it by 12 for monthly periods: =SLN(cost, salvage, life/12). For quarterly, divide by 4: =SLN(cost, salvage, life/4). The formula adjusts automatically to match your reporting period.

What happens if salvage value equals the cost of the asset?

SLN will return zero, because there is no depreciable amount (cost - salvage = 0). This is uncommon in practice; typically salvage is lower than cost to reflect wear, obsolescence, and market conditions over the asset's life.

Is straight-line depreciation accepted for tax purposes?

Many tax authorities accept SLN, but requirements vary by jurisdiction and asset type. Some regions require MACRS (US), CCA (Canada), or other accelerated schedules. Always consult your tax advisor or local tax code to confirm which method applies to your business and asset class.

SLN function

Calculates the straight-line annual depreciation expense of an asset based on its cost, salvage value, and useful life in years.

=SLN(cost, salvage, life)

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Arguments

How SLN reads its arguments

Argument	Required	Description
cost	Required	The initial cost of the asset. Must be a positive number; if zero or negative, results may be unexpected.
salvage	Required	The estimated value of the asset at the end of its useful life. Must be non-negative and typically less than cost.
life	Required	The number of periods (usually years) the asset is expected to be useful. Cannot be zero (causes #DIV/0!) or negative.

Returns

A number representing the depreciation per period (typically annual).

Availability

Excel: All · Google Sheets: Supported

Worked examples

1. Calculate annual depreciation for a commercial dishwasher

Equipment	Cost	Salvage Value	Useful Life (years)
Commercial Dishwasher	5000	500	12

=SLN(5000, 500, 12)

Result: 375

The dishwasher costs $5000 and will be worth $500 after 12 years of use. The depreciable amount is $5000 - $500 = $4500. Divided evenly over 12 years, it depreciates $375 per year, the amount recorded as an expense on the income statement.

2. Compare annual depreciation for multiple kitchen appliances

Equipment	Cost	Salvage	Life (years)	Annual Depreciation
Commercial Microwave	1800	200	8	=SLN(1800,200,8)
Stainless Steel Prep Table	2500	250	10	=SLN(2500,250,10)

=SLN(1800, 200, 8) for a microwave; =SLN(2500, 250, 10) for a prep table

Result: Microwave: 200; Prep Table: 225

The microwave depreciates $1600 over 8 years ($200/year), while the prep table depreciates $2250 over 10 years ($225/year). Even though the prep table costs more initially, the microwave depreciates faster per year due to its shorter useful life, affecting how much expense each shows annually.

3. Adjust depreciation when salvage expectations change

Equipment	Cost	Salvage (Original)	Salvage (Revised)	Life (years)
Prep Table	2500	250	500	10

=SLN(2500, 250, 10) vs. =SLN(2500, 500, 10)

Result: Original: 225; Revised: 200

If the prep table is expected to retain $250 in scrap value, annual depreciation is $225. If refurbishment or market conditions estimate higher salvage at $500, annual depreciation drops to $200. This shows how updating asset assumptions mid-life affects ongoing expense recognition.

Common errors

Which SLN error are you seeing?

Error	Why it happens	How to fix it
#DIV/0!	The life argument is zero, causing division by zero in the formula (cost - salvage) / life.	Ensure life is a positive number greater than zero. For example, use =SLN(5000, 500, 10) not =SLN(5000, 500, 0).
#VALUE!	One or more arguments are text strings instead of numbers, such as =SLN("$5000", 500, 12) or =SLN(5000, "salvage", 12).	Convert all arguments to numbers. Remove currency symbols or text labels: use =SLN(5000, 500, 12) not =SLN("$5000", "$500", 12).
#NUM!	The life argument is negative, which does not make sense for asset depreciation and spreadsheet engines reject it.	Use a positive number for life. If you need to reverse a calculation, restructure it: instead of =SLN(5000, 500, -10), use =SLN(5000, 500, 10).

Tips and when to use something else

SLN assumes uniform depreciation; use DDB or SYD if your accounting requires accelerated depreciation that front-loads expense into earlier years.
Salvage value should never exceed cost for realistic asset depreciation; if it does, you will get negative annual depreciation.
For sub-annual periods (monthly depreciation), divide life by 12: =SLN(cost, salvage, life/12) to get monthly depreciation instead of annual.
Always ensure cost exceeds salvage in your planning; the difference divided by life is what your business records as annual depreciation expense.

Related functions

DDBCalculates depreciation using the double declining balance method, an accelerated depreciation approach that depreciates assets faster in early periods.SYDSYD returns the sum-of-years-digits depreciation of an asset for a specified period, front-loading deductions in early years.DBDB returns the periodic depreciation amount of an asset using the declining balance method, which reduces depreciation each period.PVReturns the present value of an investment based on a series of regular payments and a constant interest rate.FVFV returns the future value of a series of regular cash flows at a constant interest rate, modeling compound growth over time.

Frequently asked questions

What's the difference between SLN and DDB or SYD depreciation methods?: SLN (straight-line) divides total depreciable cost evenly across all periods. DDB and SYD are accelerated methods that depreciate more in early years and less in later years. Use SLN for simplicity and consistent annual expense; use DDB or SYD if tax or accounting rules require front-loaded depreciation.
Can I use SLN for monthly or quarterly depreciation instead of annual?: Yes. If your life is stated in years, divide it by 12 for monthly periods: =SLN(cost, salvage, life/12). For quarterly, divide by 4: =SLN(cost, salvage, life/4). The formula adjusts automatically to match your reporting period.
What happens if salvage value equals the cost of the asset?: SLN will return zero, because there is no depreciable amount (cost - salvage = 0). This is uncommon in practice; typically salvage is lower than cost to reflect wear, obsolescence, and market conditions over the asset's life.
Is straight-line depreciation accepted for tax purposes?: Many tax authorities accept SLN, but requirements vary by jurisdiction and asset type. Some regions require MACRS (US), CCA (Canada), or other accelerated schedules. Always consult your tax advisor or local tax code to confirm which method applies to your business and asset class.

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Reviewed 2026-09-17