SLN Formual in Excel

What Does It Do ?

This function calculates the Straight Line Depreciation of an item.
(Also known as Fixed Instalment method).

The Straight Line Depreciation is how much the value of an item reduced during a specific
period of time. The result is a uniform depreciation value.

An example would be if you bought a new car for £20,000, then kept it for 6 years.
At the end of your ownership you sell the car for £8,000.

The difference between the original and the trade in price is £20,000 - £8,000 which is £12,000.
Because you owned the car for 6 years, the SLN is calculated as £12,000 / 6 which is £2,000.

Syntax

=SLN(OriginalCost,SellingPrice,LengthOfOwnership)
The LengthOfOwnership can be any time period, days, months or years.
However, the SLN which is calculated will, be for that time, specifying 2 years ownership
as 24 months will give an SLN per month.

Formatting

No special formatting is needed.