# SYD Excel Formula

The method of “sum-of-years’ digits depreciation” is followed to find out an asset’s depreciation over a time period by the Excel function SYD. The syntax of this function is as follows “SYD(cost,salvage,life,per)”. The sequence of the arguments in the function should be followed perfectly. The argument cost means the asset’s initial cost. The argument salvage means the asset’s salvage value. The argument life means the assets useful life. The term per denotes the period. The same units should be used for life and per. A function makes the calculations easier to the administrator or the users. To understand the function SYD clearly the following example can help the readers.

Consider that the initial cost is 30000; the salvage value is 7500; and life-span in years is 10. Then the formula for the 1^{st} year will be “=SYD(30000,7500,10,1)” and the result will be 4090.91. If you want to calculate the tenth year’s depreciation allowance then the formula will be “=SYD(3000,7500,10,10)” and the result will be 409.09. When you will use the functions in your database, then you will use the cell references for the convenience of the calculations. Before applying the function in a database, the administrator or the user should be familiar with all the arguments used in the functions. Several functions can also be used in one formula to compute more complex calculations, whatever may be all the rules of the syntax should be followed properly.

The actual formula which is used by the SYD function to calculate the depreciation is as follows “SYD = ((cost – salvage) * (life – per + 1) * 2) / (life)(life + 1)”. If anyone wants to apply this formula instead using the function SYD, then he/she will also get the same result.

Now, anyone may ask, how will he/she use the SYD function in the spreadsheet? Then follow the instructions given here. Start the MS Excel program, then open the file where you want to use the function SYD. Here you should remember that all the values should be given in the spreadsheet to find out the result by using the function. Cost, salvage, and life should be given in three cells of three columns. Name the column A as cost, column B as salvage, and column C as life and name the column D as “Depreciation allowance year 1”. Now add the values in the respective column and set the pointer on the D2 cell and type the formula “=SYD(A2,B2,C2,1)” and press the enter key, the result will be there immediately. To find out the depreciation allowance year 2, name the E column as “Depreciation allowance year 2” and set the pointer on the E2 cell, then type the formula “=SYD(A2,B2,C2,2)” and press the enter key, the depreciation allowance for the year 2 will be there immediately.

You can find more examples over the internet. You can also use the help files of the Excel program to learn more about different functions. The more functions you will be able to understand more flexible the database will be.

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