The SLN function in Google Sheets is a financial function utilized to calculate the depreciation of an asset over a specific period using the straight-line method. This method spreads the cost of the asset evenly over its useful life, making it easy for users to assess the asset’s value over time and maintain accurate financial records.

Syntax

SLN(cost, salvage, life)

• cost: The initial cost of the asset.
• salvage: The estimated salvage value of the asset at the end of its useful life.
• life: The total number of periods (usually years) the asset is expected to be used.

Example #1

SLN(5000, 500, 5)

This would calculate the annual depreciation of an asset valued at $5,000, with a salvage value of $500 over a lifespan of 5 years, resulting in a yearly depreciation of $900.

Example #2

SLN(10000, 2000, 8)

In this case, the function computes the annual depreciation for an asset that costs $10,000, has a salvage value of $2,000, and is expected to last 8 years, yielding an annual depreciation of $1,000.

Example #3

SLN(3000, 300, 3)

Here, the calculation is for an asset costing $3,000, expecting to be worth $300 after 3 years, which results in an annual depreciation of $900.

Error handling

• VALUE!: This error occurs if any of the arguments provided are non-numeric (e.g., text instead of numbers).
• NUM!: This indicates that one of the numeric parameters is invalid, such as a negative life span or salvage value.
• DIV/0!: This error appears if the life parameter is set to zero, as division by zero is not possible in calculations.

Conclusion

The SLN function is an essential tool for businesses and individuals looking to track the depreciation of their assets in a straightforward manner. By leveraging this function, users can gain clear insights into their investment’s value over time, aiding in better financial decision-making and asset management.