Financial

SYD Formula

Calculates depreciation using the sum-of-years'-digits method, which is an accelerated depreciation approach that front-loads more depreciation in earlier years. Use SYD when assets lose more value early in their life (like technology or vehicles) and you want higher depreciation expense in the first few years.

Syntax

SYD(cost, salvage, life, per)
ParameterDescription
cost Parameter of the SYD function.
salvage Parameter of the SYD function.
life Parameter of the SYD function.
per Parameter of the SYD function.
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Examples

First year accelerated depreciation

Formula
=SYD(50000, 5000, 5, 1)
$15,000.00. A $50K asset with $5K salvage over 5 years gets $15K depreciation in year 1 (5/15 of the depreciable base).

Year 3 depreciation

Formula
=SYD(50000, 5000, 5, 3)
$9,000.00. By year 3, depreciation drops to $9K (3/15 of the depreciable base).

Last year depreciation

Formula
=SYD(50000, 5000, 5, 5)
$3,000.00. In the final year, only $3K is depreciated (1/15 of the base). Sum of all 5 years equals the full $45K depreciable amount.

Common Errors

#NUM!

Period is less than 1 or greater than life, or life is zero.

#VALUE!

An argument is not a valid number.

Tips

Higher early deductions

SYD gives larger depreciation deductions in the first years, which can reduce taxable income when you need it most — right after a large capital purchase.

Total always equals cost minus salvage

Sum SYD across all periods and it will exactly equal cost minus salvage value, just like SLN — the timing differs, not the total.

Compare with DDB

SYD is accelerated but less aggressive than DDB (double-declining balance). Try both methods to see which better matches your asset's actual value curve.

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