Excel has built-in functions for the common depreciation methods: SLN spreads cost evenly (straight-line), while DDB and SYD front-load it (accelerated). Pick the one your accounting requires.
The example
A $10,000 asset, $1,000 salvage, 5-year life — year 1 depreciation by method.
| A | B | |
|---|---|---|
| 1 | Method | Year 1 |
| 2 | SLN (straight-line) | $1,800 |
| 3 | DDB (double-declining) | $4,000 |
| 4 | SYD (sum-of-years) | $3,000 |
The formula
Year-1 depreciation, three ways:
How it works
Three methods, same cost/salvage/life inputs:
SLN(cost, salvage, life)— straight-line: the same amount every year,(cost - salvage)/life.DDB(cost, salvage, life, period)— double-declining balance: accelerated, biggest deduction in year 1, tapering off.SYD(cost, salvage, life, period)— sum-of-years’-digits: also accelerated but smoother than DDB.- DDB and SYD need the period (which year); SLN doesn’t, since every year is identical.
Build a full schedule by filling the period (1, 2, 3…) down a column and the chosen function across. All methods total the same depreciable base (cost − salvage) over the life — they just distribute it differently across the years.
Try it: interactive demo
$10,000 cost, $1,000 salvage, 5-yr life. Pick a year and method.
Variations
Straight-line per month
Divide the annual SLN by 12:
Variable declining (VDB)
More control over the rate and partial periods:
Total to date
Sum the periods so far for accumulated depreciation.
Pitfalls & errors
DDB can dip below salvage. DDB doesn’t automatically stop at the salvage value in later years — cap it, or switch to SLN for the tail (what VDB can automate).
Period is required for DDB/SYD. Forgetting the 4th argument errors. SLN has no period because it’s constant.
Match the method to your rules. Tax and book depreciation may require a specific method — check the requirement before choosing.
Practice workbook
Frequently asked questions
How do I calculate depreciation in Excel?
What's the difference between SLN, DDB and SYD?
Why does DDB go below the salvage value?
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