@SYD(cost;salvage;life;period) calculates the sum-of-the-years'-digits depreciation allowance of an asset with an initial value of cost, an expected useful life, and a final value of salvage, for a specified period.
cost is the amount paid for the asset. cost can be any value.
salvage is the value of the asset at the end of its life. salvage can be any value.
life is the number of periods the asset takes to depreciate to its salvage value. life can be any value greater than or equal to 1.
period is the point in time for which you want to find the depreciation allowance. period can be any value greater than or equal to 1.
The sum-of-the-years'-digits method accelerates the rate of depreciation so that more depreciation expense occurs in earlier periods than in later ones (although not so much as when you use the double-declining balance method). The depreciable cost is the actual cost minus the salvage value.
Use @SYD when you need a higher depreciation expense early in the life of an asset, such as in preparing tax returns.
You have an office machine that cost $10,000. The useful life of the machine is 10 years, and the salvage value in 10 years will be $1,200. You want to calculate depreciation expense for the fifth year, using the sum-of-the-years'-digits method:
@SYD(10000;1200;10;5) = $960