How to use SYD Function in Excel

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.

SYD Function - How to use SYD Function in Excel

Syntax:  =SYD(B1,B2,B3,1)

Result:

SYD Function in Excel 1 - How to use SYD Function in Excel

Based on the Excel spreadsheet above, the following SYD examples would return:

Syntax: =SYD(B1,B2,B3,2)
Result: $7,147.62

Syntax: =SYD(B1,B2,B3,3)
Result: $6,771.43

Syntax: =SYD(B1,B2,B3,4)
Result: $6,395.24

Syntax: =SYD(B1,B2,B3,5)
Result: $6,019.05

Syntax: =SYD(B1,B2,B3,6)
Result: $5,642.86

Syntax: =SYD(B1,B2,B3,7)
Result: $5,266.67

Syntax: =SYD(B1,B2,B3,8)
Result: $4,890.48

Syntax: =SYD(B1,B2,B3,9)
Result: $4,514.29

Syntax: =SYD(B1,B2,B3,10)
Result: $4,138.10

Note:

  1. We need to provide the arguments life and per in the same units of time: days, months, or years.
  2. #VALUE! error – Occurs when the given arguments are non-numeric.
  3. #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.
  4. SYD is calculated as follows: SYD Function in Excel - How to use SYD Function in Excel
READ:  How to use AMORDEGRC Function in Excel

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