How to Calculate Straight-Line Depreciation with SLN in Excel

Spread the cost of a delivery van evenly over its useful life, by year and by month, and track its book value.

You will learn to

• Calculate annual straight-line depreciation
• Calculate monthly depreciation
• Find book value after a number of years

How it works

Straight-line depreciation charges the same amount every period: (cost − salvage) ÷ life. In Excel, =SLN(46000,8500,6) returns $6,250 a year for a $46,000 van worth $8,500 after six years.

For monthly bookkeeping, express the life in months: =SLN(cost,salvage,life*12). Book value at the end of any year is the cost minus the depreciation charged so far.

=SLN(B2,B3,B4)