The **SLN **function, an **Excel Financial function**, calculates the depreciation of an asset for one time period using the straight line method for depreciation calculation. During each period of an asset’s lifetime, the straight line technique simply subtracts a specific amount from its value. The straight line depreciation for one period is determined using the equation;

**Straight line depreciation= (cost-salvage)/life.**

Excel **SLN **function applies this equation to calculate the depreciation of an asset.

The above image gives a general overview of the **SLN **function. Throughout the article, we will know more details and usages of this function.

**Table of Contents**hide

## Introduction to The SLN Function

**❑ Objective**

Excel **SLN** function returns the straight-line depreciation of an asset for one period.

**❑ Syntax**

`SLN(cost, salvage, life)`

**❑ Argument Explanation**

Argument | Required/Optional | Explanation |
---|---|---|

cost |
Required | Initial cost of the asset |

salvage |
Required | Asset value after the asset has been fully depreciated |

life |
Required | The useful life of the asset or the number of periods over which the asset will be depreciated |

**❑ Output**

The **SLN **function returns one period straight line depreciation of an asset.

**❑ Version**

This function has been available in Excel since Excel 2000. So, any newer version of Excel 2000 has the **SLN** function.

## How to Use The SLN Function in Excel: 3 Examples

Now let’s see some examples which show different applications of the **SLN **function.

### 1. Calculate Straight Line Depreciation using The SLN Function

The basic function of the **SLN **function is to calculate straight line depreciation of an asset. Suppose in our dataset we have the initial cost (the beginning price of the asset), salvage (value after full depreciation), and life (number of depreciation periods) of the asset. Now, we will calculate per period depreciation of the asset using the **SLN **function.

➤ Type the following formula,

`=SLN(C4,C5,C6)`

Here, cell **C4** contains cost, cell **C5 **contains salvage and cell **C6 **contains life of the asset. The formula will return the straight line depreciation of the asset using the equation; **Straight line depreciation = (cost-salvage)/life**.

➤ After that, press **ENTER**.

As a result, you will get the straight line depreciation of the asset.

### 2. Excel SLN Function in VBA

We can also use the **SLN **function to create a Microsoft **Visual Basic Applications (VBA) **macro in order to calculate the depreciation of an asset. First,

➤ Press **ALT+F11** to open the **VBA **window.

➤ Right click on the sheet name from the left panel of the **VBA **window and go to **Insert **> **Module**.

As a result, a **Module (Code) **window will be opened.

➤ Insert the following code in this window

```
Sub Depreciation()
Range("C7").Value = SLN(Range("C4"), Range("C5"), Range("C6"))
End Sub
```

The code will return the depreciation in cell **C7 **taking the cost from cell **C4**, salvage from cell **C5 **and life from cell **C6**.

➤ After that, close the **VBA **window.

Now,

➤ Go to the **View **tab and Select** Macro**.

As a result, the **Macro **window will be opened.

➤ Select **Depreciation **from the box, **Macro name**, and click on **Run**.

Finally, we will get the depreciation of the asset in cell **C7**.

### 3. Calculate Depreciated Value for Every Year

In accounting, depreciation is used to calculate the depreciated value of an asset every year. In this example, we will see how we can use the **SLN **function to calculate the depreciated value in every year of the lifetime of an asset.

Suppose we have the following dataset where the initial cost, salvage, and total life of an asset are given. Now, we will calculate the depreciated value of the asset in every year of its lifetime.

At the beginning (year 0) the asset won’t be depreciated and it will have its full value. So, for year 0, the depreciated value will be equal to the initial cost of the asset.

#### 3.1. Depreciation

For year 1,

we have calculated the depreciation using the following formula,

`=SLN($C$4,$C$5,$C$6)`

Here, the formula will return the straight line depreciation of the asset. We have locked the reference cells because the initial cost, salvage, and life of the asset from cells **C4, C5, C6 **will be the same in each year’s calculations.

#### 3.2. Accumulated Depreciation

Accumulated depreciation is the total depreciation of the asset from the beginning to the current year. So, if we simply add up the accumulated depreciation of the previous year (cell **D9**) and depreciation of the current year (cell **C10**), we will get the accumulated depreciation of the current year.

#### 3.3. Depreciated Value

The depreciated value of the asset in a year will be the value found after subtracting the accumulated depreciation of the year from the initial cost of the asset. So if we subtract the accumulated depreciation of a year (cell **D10**) from the initial cost (cell **C4)**, we will get the depreciated value of the asset (cell **E10**) in that year (year 1). Here, we have locked the cell **C4 **as the initial cost will remain the same in every year.

At last, we have simply dragged the cells **C10**, **D10 **and **E10 **to the end of our dataset. As a result, we have got the depreciation, accumulated depreciation, and depreciated value of the asset in every year of its lifetime.

In this similar manner, you can calculate the depreciated value of any asset in every year of its life, if the initial cost, salvage, and life are given.

## 💡 Things to Remember When Using SLN Function

📌If the **life **argument is equal to **0**, the function will return **#DIV/0!** error.

📌 If any of the supplied arguments are non-numeric, the function will show **#VALUE!** error.

**📂 Download Practice Workbook**

## Conclusion

I hope now you have a detailed understanding of Excel **SLN **function and of its applications. If you have any confusion, please leave a comment.