Using the Excel SYD Function
SummaryThe Excel SYD function returns the sum-of-years' deprecation of an asset for a specified period.
Syntax=SYD (cost, salvage, life, per)
Required. Initial cost of the asset.
Required. Value at the end of the depreciation period. Also known as salvage value.
Required. Number of periods over which the asset is depreciated. Also know as the useful life of the asset.
Required. A period. Must use the same unit as life.
Usage NotesSYD returns the sum-of-years' depreciation for an asset in a given period.
The SYD function calculates the depreciation as follows:
1) The asset begins with a value of $100,000 in Year 0 and ends up with a value of $15,000 in Year 5, producing a loss of $85,000 in value over the period.
2) Depreciation in Year 1 is calculated by 5/15 * 85,000 = 28,333; Year 2 is calculated by 4/15 * 85,000 = 22,667, etc.
3) Excel finds the denominator by summing the years as follows: =1+2+3+4+5 = 15.
Other Depreciation Functions
SLN Function: Straight-line depreciation method
DB Function: Fixed-declining balance depreciation method
DDB Function: Double-declining balance depreciation method
VDB Function: Variable declining balance depreciation method