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Excel how-to guide
How to sln straight line depreciation in Excel
Calculate the annual depreciation for equipment, vehicles, or software assets on a simple straight-line schedule.
Step-by-step instructions
How to sln straight line depreciation — 3 steps
1
Enter the asset cost (purchase price) as the first argument.
2
Enter the salvage value (residual value at end of life) as the second argument.
3
Enter the useful life in periods (years) as the third argument.
Example data
Worked example
| Parameter | Value |
|---|---|
| Asset Cost | 25000 |
| Salvage Value | 2500 |
| Useful Life (years) | 5 |
| Annual Depreciation | =SLN(25000,2500,5) |
Common mistakes
Errors to watch out for
Result differs from accounting schedule
SLN calculates the same amount for every period. If your accounting policy prorates the first year, calculate the partial-year amount separately — SLN does not handle mid-year acquisitions.
Salvage value higher than cost
SLN requires cost > salvage value. If salvage exceeds cost, the formula returns a negative result (appreciation), which is typically not meaningful for depreciation schedules.
FAQ
Frequently asked questions
How do I build a full depreciation schedule?
Create a table with years 1 through N in one column. In the next column use SLN for each row — the value is the same every year. Sum the column to verify it equals cost minus salvage.
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