The Excel SYD function returns the “sum-of-years” depreciation for an asset in a given period. The calculated depreciation is based on initial asset cost, salvage value, and the number of periods over which the asset is depreciated.
Syntax:= SYD (cost, salvage, life, period)
The SYD function syntax has the following arguments:
- Cost Required. The initial cost of the asset.
- Salvage Required. The value at the end of the depreciation (sometimes called the salvage value of the asset).
- Life Required. The number of periods over which the asset is depreciated (sometimes called the useful life of the asset).
Per Required. The period and must use the same units as life.
Example: Let’s look at some Excel SYD function examples and explore how to use the SYD function as a worksheet function in Microsoft Excel:
In the example below, the SYD function uses the sum-of-years’ digits depreciation method to calculate the yearly depreciation of an asset that costs $100,000 at the start of year 1, and has a salvage value of $21,000 after 20 years.
Based on the Excel spreadsheet above, the following SYD examples would return:
- We need to provide the arguments life and per in the same units of time: days, months, or years.
- #VALUE! error – Occurs when the given arguments are non-numeric.
- #NUM! error – Occurs when:
- The salvage argument provided is less than zero.
- The life or per argument given is less than or equal to zero.
- The per argument provided is greater than the life argument provided in the formula.
- SYD is calculated as follows: