Excel like a finance pro.
The functions, VBA, and shortcuts a finance operator actually uses — curated, with CFO examples. Prefer them pre-built? Grab a ready-made model.
Depreciation (SLN · DDB · SYD)
FinanceSpread an asset's cost over its life — build an asset register and schedule.
Difficulty
1What is it?
Depreciation spreads the cost of a fixed asset (a van, machinery, laptops) across the years it's used, instead of expensing it all at once. Excel gives you the three classic methods: SLN charges the same amount every year (straight-line); DDB is double-declining balance, loading the expense into the early years; SYD is sum-of-the-years'-digits, also accelerated but gentler than DDB. Feed each an asset's cost, its salvage (scrap) value, and its useful life, and you have a depreciation schedule — and a stack of them is your asset register.
2What it looks like
SLN(cost, salvage, life) · DDB(cost, salvage, life, period) · SYD(cost, salvage, life, per)- cost
- What the asset cost, all-in (purchase + freight + install).
- salvage
- What you expect it to be worth at the end of its life (often 0).
- life
- Useful life, in years (or the same period you're depreciating in).
- period / per
- Which year you're computing — 1 for the first, 2 for the next… (DDB / SYD only).
3When you use it
- Build a depreciation schedule for one asset, year by year.
- Compare straight-line vs. accelerated methods for the tax or book impact.
- Roll every asset into a register — total depreciation expense and net book value.
- Feed the depreciation line of a 3-statement model or a budget.
4See it in action
Change the inputs — the formula and result update live. Prefer the real thing? Download the Excel file and open it in Excel.
Asset register
| Asset | Cost | Salvage | Life (yrs) | Method | Year 1 dep. | |
|---|---|---|---|---|---|---|
| $18,000 | ||||||
| $6,000 | ||||||
| $18,182 |
Total cost
$183,000
Depreciable base
$158,000
salvage $25,000
Year 1 depreciation
$42,182
Assets
3
Depreciation schedule (all assets)
| Year | Depreciation | Accumulated | Net book value |
|---|---|---|---|
| 1 | $42,182 | $42,182 | $140,818 |
| 2 | $33,164 | $75,345 | $107,655 |
| 3 | $27,025 | $102,371 | $80,629 |
| 4 | $16,615 | $118,986 | $64,014 |
| 5 | $11,741 | $130,727 | $52,273 |
| 6 | $9,091 | $139,818 | $43,182 |
| 7 | $7,273 | $147,091 | $35,909 |
| 8 | $5,455 | $152,545 | $30,455 |
| 9 | $3,636 | $156,182 | $26,818 |
| 10 | $1,818 | $158,000 | $25,000 |
Depreciation is the yearly expense that spreads an asset's cost over its useful life; net book value is what's left on the balance sheet. Straight-line is even; declining balance and sum-of-years load it into the early years. Each asset is assumed placed in service at the start of year 1.
5Common errors
Book value below salvageDDB runs past where the balance meets salvage.Fix: DDB already floors at salvage; if you need it to land exactly on salvage, switch the tail to SLN (or use VDB).
#NUM! / #VALUE!life is 0, or period is outside 1…life.Fix: Use a life of at least 1 and a period from 1 to life — one per year.
Doesn't fully depreciateDDB leaves a residual above salvage.Fix: That's real DDB behaviour — switch to straight-line for the final years to finish it off.
6Better functions & alternatives
- DB — Fixed-declining balance — a set rate rather than double the straight-line rate.
- VDB — Variable-declining balance that auto-switches to straight-line so the asset fully depreciates.
- SLN — The simplest method — an equal charge every year.
Want Depreciation (SLN · DDB · SYD) already wired into a model? Wauvel's free tools download as branded, formula-driven Excel.
Learn the moves here — or let Wauvel run them on your numbers.
Get my free report →