# SYD

The `SYD` function returns the sum-of-years' digits depreciation of an asset for a specified period. It is commonly used in accounting to calculate the depreciation expense of an asset over its useful life. The function calculates the depreciation for a specific period using the sum-of-years' digits method. This method assumes that the asset's useful life will decline more quickly in the early years of its life and slow down over time.

## Usage

Use the `SYD` formula with the syntax shown below, it has 4 required parameters:

Parameters:
1. cost (required):
The initial cost of the asset.
2. salvage (required):
The value of the asset at the end of its useful life.
3. life (required):
The useful life of the asset in periods.
4. period (required):
The period for which you want to calculate the depreciation.

## Examples

Here are a few example use cases that explain how to use the `SYD` formula in Google Sheets.

### Calculate Depreciation Expense

Use `SYD` to calculate the depreciation expense of an asset over its useful life.

### Calculate Book Value

Use `SYD` to calculate the book value of an asset at the end of a specific period.

### Calculate Income Tax Deduction

Use `SYD` to calculate the income tax deduction for an asset that is being depreciated.

## Common Mistakes

`SYD` not working? Here are some common mistakes people make when using the `SYD` Google Sheets Formula:

### Incorrect argument order

Users may mistakenly input the arguments in the wrong order, causing incorrect output. It is important to ensure the correct order is followed: cost, salvage, life, period.

### Using negative values

Negative values for any of the arguments will result in a #NUM! error. Ensure that all values entered are positive.

### Incorrect input type

If any of the arguments are not numeric values, the formula will result in a #VALUE! error. Ensure that all arguments are numeric values.

The following functions are similar to `SYD` or are often used with it in a formula:

• `DDB`

The `DDB` function returns the depreciation of an asset using the double-declining balance method. This function is most commonly used to calculate depreciation of an asset over time. The calculation takes into account the initial cost of the asset, its salvage value, the asset's estimated life, and the end of the period for which depreciation is being calculated.

• `SLN`

The SLN function calculates the depreciation of an asset for a single period using the straight-line method. This method assumes that the asset loses an equal amount of value each year over its useful life. The function takes three arguments: the initial cost of the asset, its salvage value at the end of its useful life, and the total number of periods of its useful life.

• `NPV`

The `NPV` function calculates the net present value of a series of cash flows, discounted by a specified rate. It is commonly used to determine the present value of an investment, where the cash flows represent incoming and outgoing payments. The function takes a discount rate and one or more cash flow values as input.

• `IRR`

The `IRR` function is used to calculate the Internal Rate of Return for a series of cash flows. The IRR is the interest rate at which the Net Present Value of the cash flows equals zero. It is commonly used to evaluate potential investments or projects.

You can learn more about the `SYD` Google Sheets function on Google Support.