From the course: Excel: Financial Functions in Depth (2022)

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SYD: Calculate depreciation for a specified period

SYD: Calculate depreciation for a specified period - Microsoft Excel Tutorial

From the course: Excel: Financial Functions in Depth (2022)

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SYD: Calculate depreciation for a specified period

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- [Danielle] Another depreciation function that you might need to use is the SYD function, which calculates the sum of the years' digits depreciation method. Let's have a look at how to calculate this in Excel. So we'll pick up SYD, the cost, the salvage, the life, and the period. There we go, and that will automatically spill down the range. So as we can see, it's a more accelerated write-off than the straight line method, but less than either of the declining balance methods. Under the sum of the years' digits method, annual depreciation is determined by multiplying the depreciable cost by a schedule of fractions which, fortunately for us, Excel calculates automatically. Let's have a look now at how each of these functions look visually. So I'm just going to create another chart here. We don't need the title for this one, and I'll just change the colors. So that gives us a good feel for how each of these methods…

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