For example, for an asset with an initial cost of $10,000, a useful life of 5 years, and a salvage value of $2,000, depreciation in year 1 can be calculated with SYD as follows: In the worksheet as shown, the formula in C7, copied down, is:
Sum of years calculation In the example, the asset has a useful life of 5 years. Excel sums the years like this: This sum is then used in the calculation as follows: The asset loses 8000 in value over a 5 year period, so depreciation in period 1 = 5/15 * 8000 = $2,667, depreciation in period 2= 4/15 * 8000 = $2,133 , and so on....