SYD

Definition: The SYD function in Excel is used to calculate the depreciation of an asset for a specified period using the sum of the years’ digits method.

Syntax: ==SYD(cost, salvage, life, period).

Situation: This formula is appropriate in situations where you need to calculate the depreciation of an asset for a specific period using the sum of the years’ digits method.

Example: If you have an asset that cost $100,000, has a salvage value of $10,000, has a useful life of 5 years, and you want to calculate the depreciation for the third year, you would use the formula =SYD(100000, 10000, 5, 3). This would return a value of $32,000, which is the depreciation for the third year.