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How to calculate depreciation in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=SLN(A2,B2,C2)✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Asset Cost | Salvage Value | Useful Life (Yrs) | Annual Depreciation |
| 10000 | 1000 | 5 | |
| 50000 | 5000 | 10 | |
| 25000 | 2500 | 7 | |
| 8000 | 500 | 4 |
=SLN(A2,B2,C2)→1800
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Step by step
- 1Set up three columns: Asset Cost (A), Salvage Value (B), and Useful Life in Years (C).
- 2In the Annual Depreciation column, enter =SLN(A2,B2,C2). This returns the equal depreciation charge for each year under the straight-line method.
- 3For declining balance depreciation, use =DB(A2,B2,C2,period) where the last argument is the year number (1, 2, 3, etc.).
Tips
- Use SYD (Sum of Years Digits) for accelerated depreciation: =SYD(cost,salvage,life,period). DDB gives double-declining balance depreciation.
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Frequently asked
What is the difference between SLN and DB?
SLN gives the same depreciation amount each year (straight-line). DB gives higher depreciation in early years that declines over time (accelerated).
Can I create a full depreciation schedule?
Yes. Use SLN in the first year column and fill down; for DB, use the period argument (1, 2, 3…) down each row to get each year's charge.
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