Investment Studio > Expressions > Functions > Financial > SYD

float syd(float initial_cost, float salvage_value, float total_periods, float period)

Returns the "sum-of-years' digits" depreciation of an asset for the specified period.

initial_cost > 0 is the initial value of the depreciating asset.

salvage_value < initial_cost is the final value of the asset after depreciation.

total_periods >= 1 is the number of periods over which the asset depreciates (the asset's useful life).

period >= 1 is the number of the period for which the depreciation is to be returned.

The "sum-of-years' digits" depreciation is defined by the expression

SYD = ((initial_cost - salvage_value) * (total_periods - period + 1) * 2) / (total_periods * (total_periods + 1))

Example

Consider a new office computer with the following properties:

• Initial cost: USD 3000
• Salvage value: USD 500
• Lifetime: 5 years

The entire annual depreciation series according to the "sum-of-years' digits" method is given by

syd(3000, 500, 5, 1) » 833.33

syd(3000, 500, 5, 2) » 666.67

syd(3000, 500, 5, 3) = 500

syd(3000, 500, 5, 4) » 333.33

syd(3000, 500, 5, 5) » 166.67

See also db, ddb, sln, vdb.