SLN Function in Excel & Sheets
The SLN function calculates straight-line depreciation of an asset for one period. Master asset depreciation with practical examples and solutions.
Excel
Google SheetsExcelGoogle Sheets=SLN(cost, salvage, life)Quick Answer
SLN function SLN function calculates the straight-line depreciation of an asset for a single period, distributing the asset's depreciable value evenly over its useful life. Use the syntax `=SLN(cost, salvage, life)` where cost is the initial purchase price, salvage is the residual value at end of life, and life is the total number of depreciation periods.
=SLN(cost, salvage, life)Real-World SLN Examples
Office Equipment Depreciation
Calculate annual depreciation for office furniture and computers
Manufacturing Equipment
Monthly depreciation for production machinery
Commercial Building Depreciation
Calculate annual depreciation for real estate investment
Vehicle Fleet Depreciation
Annual depreciation for company vehicles
Technology Asset with Zero Salvage
Depreciate computer servers with no residual value
Leasehold Improvements
Depreciate tenant improvements over lease term
Common SLN Errors and Solutions
Non-numeric values in SLN parameters
One or more parameters contains text, blank cells, or boolean values instead of numbers
1. Verify all three parameters (cost, salvage, life) are numeric 2. Check for hidden text or spaces in cells 3. Use VALUE() function to convert text numbers 4. Ensure cells aren't formatted as text 5. Remove any currency symbols ($) if manually entered
Use data validation to restrict inputs to numbers only. Set cell format to 'Number' or 'Currency' before entering values.
Example:
Invalid parameter values
Mathematical impossibility such as negative life, salvage greater than cost, or life equal to zero
1. Ensure life > 0 (can't have zero-year depreciation) 2. Verify salvage ≤ cost (residual can't exceed original cost) 3. Check life isn't negative 4. Confirm cost is positive 5. Validate salvage ≥ 0 (negative salvage is illogical)
Add input validation: Life must be positive, Salvage must be between 0 and Cost. Use conditional formatting to flag invalid entries.
Example:
Division by zero in life parameter
Life parameter is exactly zero, causing division by zero in the depreciation calculation
1. Verify life cell isn't empty (empty = 0) 2. Check for formulas returning 0 in life parameter 3. Ensure life represents actual time periods 4. Use IF statement to prevent zero division 5. Set minimum life value of 1
Never leave life parameter empty. Use data validation to set minimum value of 1 for life. Add error checking before calculation.
Example:
Missing required parameters
One or more of the three required parameters is missing, blank, or references an empty cell
1. Verify all three parameters are provided (cost, salvage, life) 2. Check cell references point to cells with values 3. Ensure no blank cells in parameter range 4. Use ISBLANK() to detect missing values 5. Provide default values if appropriate
Build input validation requiring all parameters. Use conditional formatting to highlight blank required cells. Consider using named ranges.
Example:
SLN returns negative depreciation
Salvage value is greater than cost, creating a negative depreciable amount
1. Verify salvage value is less than cost 2. Check for data entry errors (reversed values) 3. Confirm salvage represents end-of-life value 4. Review asset valuation assumptions 5. Use ABS() if displaying as positive needed
Add validation rule: Salvage < Cost. Use drop-down lists or sliders to prevent impossible combinations. Double-check data entry.
Example:
SLN Best Practices and Pro Tips
Build Complete Depreciation Schedules
Create a comprehensive depreciation schedule by combining SLN with a period counter. This provides a complete view of asset value over time, essential for financial planning and tax reporting.
Always Document Depreciation Assumptions
Create a separate assumptions sheet listing: useful life basis, salvage value calculation method, depreciation start date, and asset classification. This ensures consistency and audit trail for financial statements.
Use Named Ranges for Clarity
Instead of cell references like A2, B2, C2, use named ranges like AssetCost, SalvageValue, UsefulLife. This makes formulas self-documenting and reduces errors when copying formulas.
SLN Calculates Per-Period Amount Only
Remember that SLN returns the depreciation for ONE period, not cumulative depreciation. To calculate total depreciation to date, multiply SLN result by the number of periods elapsed.
Separate Land from Building Cost
When deprecating real estate, always exclude land value from the cost parameter. Land is never depreciated. Only depreciate the building structure and improvements using their allocated costs.
Consider Tax vs Book Depreciation
Tax depreciation (MACRS in US) often differs from book depreciation (straight-line). Maintain separate calculations for tax reporting and financial statements. SLN is typically used for book purposes.
Build Validation Into Your Spreadsheet
Add data validation rules and conditional formatting to prevent common errors. Highlight cells where salvage >= cost or life <= 0. Use drop-down lists for standardized asset lives.
Calculate and Display Book Value
Always show remaining book value alongside depreciation expense. This helps stakeholders understand the asset's carrying value on the balance sheet at any point in time.
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Example Excel formula:
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