Which Excel function is used to calculate depreciation under Straight Line Method (SLM)?

The SLN function in Excel is specifically designed to calculate depreciation using the Straight Line Method.

Under the Straight Line Method, depreciation remains constant throughout the useful life of the asset. The formula is:

$Depreciation = \frac{Cost - Residual\ Value}{Useful\ Life}$

The SLN function syntax in Excel is:

=SLN(cost, salvage, life)

Where:

• cost = Original cost of the asset
• salvage = Residual/Scrap value at the end of useful life
• life = Number of periods over which the asset is depreciated

The other options serve different purposes:

• DDB → Calculates depreciation using Double Declining Balance method
• DB → Calculates depreciation using Declining Balance method
• VLOOKUP → A lookup function used to search for values in a table, unrelated to depreciation

Since the question specifically asks about Straight Line Method, SLN is the appropriate Excel function.