## How do you calculate monthly depreciation in Excel?

life – Periods over which asset is depreciated.

period – Period to calculation depreciation for….Fixed-declining balance calculation.YearDepreciation Calculation1=cost * rate * month / 122=(cost – prior depreciation) * rate3=(cost – prior depreciation) * rate4=(cost – prior depreciation) * rate1 more row.

## What is the formula for calculating depreciation?

Use the following steps to calculate monthly straight-line depreciation: Subtract the asset’s salvage value from its cost to determine the amount that can be depreciated. Divide this amount by the number of years in the asset’s useful lifespan. Divide by 12 to tell you the monthly depreciation for the asset.

## What is straight formula in Excel?

The Excel SLN function returns the depreciation of an asset for one period, calculated with a straight-line method. The calculated depreciation is based on initial asset cost, salvage value, and the number of periods over which the asset is depreciated.

## How many years is straight line depreciation?

Five yearsStraight-line depreciation in action (Five years is the period over which the IRS says you have to depreciate computers.)