We’ll use a sample dataset, with the Initial Cost in **Cell B4**, the *salvage Value* in **Cell B5, **and *useful life* in **Cell B6. **We will use these cells to determine the *Depreciation per yr* by using the MACRS depreciation formula.

### Method 1 – Using the SLN Function to Calculate MACRS Depreciation

The straight-line depreciation for one period is determined using the equation;

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

**Steps:**

- In the
**C7**cell, enter the following formula.

`=SLN(C4;C5;C6)`

You will get the desired result.

**Read More: **How to Calculate Straight Line Depreciation Using Formula in Excel

### Method 2 – Using the SYD Function to Calculate MACRS Depreciation

Assets do not depreciate linearly over time. To account for this, Excel has the built-in **SYD** function to calculate depreciation.

**Steps:**

- In the
**C8**cell, insert the following formula.

`=SYD(C4;C5;C6;C7)`

- The formula will return the output value we expected.

### Method 3 – Applying the DDB Function in Excel Formula to Calculate MACRS Depreciation

A depreciation Schedule can also be prepared using the double-declining depreciation method. To apply the method, you need to use the** DDB** function. The function has five arguments: cost, salvage, life, period, and factor.

**Steps:**

- In the
**C8**cell, insert the following formula.

`=DDB(C4;C5;C6;C7)`

- You will get the desired result.

**Read More:** How to Calculate Double Declining Depreciation in Excel

### Method 4 – Using the DB Function

You can prepare a depreciation schedule using the Declining Balance depreciation method with **the DB function**. *Cost, salvage, life, period, and month* are the five inputs to the** DB** function. The first four arguments are mandatory, while the fifth is optional. The argument period represents the period in which the depreciation will be calculated.

**Steps:**

- In the
**C9**cell, insert the following formula.

`=DB(C4;C5;C6;C7;C8)`

- Here’s the output.

**Read More: **How to Calculate Accumulated Depreciation in Excel

### Method 5 – Use of the VDB Function

Since we are calculating the depreciation from a specific month span, the useful life is converted to the month. The Factor defines the rate at which the balance declines and the No_switch is used to determine the nature of the depreciation method. If the value is TRUE, Excel will not switch to a straight-line depreciation method.

**Steps:**

- In the
**C10**cell insert the following formula.

`=VDB(C4;C5;C6;C7;C8;C9;TRUE)`

- You will get the following result.

### Method 6 – Using the Units of Production

The depreciation for one period using the units of production depreciation method is determined using the equation:

**Depreciation=(cost-salvage)/life in units)*Units produced per period.**

To use this method, you need to know the unit produced per period.

**Steps:**

- In the
**C8**cell, insert the following formula.

`=((C4-C5)/C6)*C7`

- The formula will return the output value we expected.

### Method 7 – Utilizing the AMORDEGRC Function

The** AMORDEGRC** function includes a depreciation coefficient that accelerates depreciation based on the asset’s useful life.

**Steps:**

- Arrange a dataset like the image below.

- In the
**D12**cell, enter the following formula.

`=AMORDEGRC($C$5;$C$6;$B$12;$C$7;C11;$C$8)`

- Use the
**Fill Handle**to apply the formula to all the desired cells.

- Here’s the result.

### Method 8 – Applying the AMORLINC Function

his function calculates French declining balance depreciation. If you know the purchasing date of an asset, you can prepare a French straight-line depreciation schedule with a constant depreciation rate using the** AMORLINC** function.

**Steps:**

- Arrange a dataset like the image below.

- In the
**D11**cell, insert the following formula.

`=AMORLINC($C$5;$C$6;$B$12;$C$7;C11;$C$8)`

- Use the
**Fill Handle**to apply the formula to all the desired cells.

- Here’s the result.

**Download the Practice Workbook**

**Related Articles**

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- How to Use Formula to Calculate Car Depreciation in Excel

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