The SYD function returns the depreciation of an asset for a given time period based on the sum-of-years’ digits depreciation method.

Syntax

=SYD(cost,salvage,life,per)

Arguments

Argument Description
cost The original cost of the asset
salvage The salvage value after the asset has been fully depreciated
life The useful life of the asset or the number of periods that you will be depreciating the asset
per The period that you wish to calculate the depreciation for. Use the same units as for the life

Examples

  A B C D E
1 Data        
2 $30,000.00 Initial cost      
3 $3,000.00 Salvage value      
4 10 Life (years)      
5          
6 Formula Result Depreciated Value Notes
7 =SYD(A2,A3,A4,1) $4,909.09 $25,090.91 Yearly depreciation allowance for the first year
8 =SYD(A2,A3,A4,5) $2,945.45 $10,363.64 Yearly depreciation allowance for the fifth year; depreciated value = initial cost minus 5 years accrued depreciation
9 =SYD(A2,A3,A4,10) $490.91 $3,000.00 Yearly depreciation allowance for the tenth year; depreciated value = initial cost minus 10 years accrued depreciation

Common Function Error(s)

Problem What went wrong
#VALUE! Occurs if any of the supplied values are non-numeric
#NUM! Occurs if either:

  the supplied salvage argument is < 0
  the supplied life or the supplied per argument is ≤ 0
  the supplied per is greater than the supplied life argument

When calculating the depreciation of an asset, it is common to use an accelerated depreciation calculation, in which the calculated value of an asset is reduced by a larger amount during the first period of its lifetime, and smaller amounts during subsequent periods.

One popular accelerated depreciation method is the sum-of-years’ digits depreciation method, which calculates depreciation using the following equation: 

    \[  \text{SYD} = \frac{(cost - salvage) * (life - per +1) *2} {life * (life +1)}  \]