# Calculate the depreciation with SYD function

In this tutorial, we calculate the depreciation of an investment by using the SYD function, which returns the sum-of-years' digits depreciation of an asset for a specified period.

Syntex: `SYD(cost, salvage, life, per)`

`cost`: The purchase price of the asset.

`salvage`: The scrap value of the asset. (The value of the asset at the end of the deprecation.)

`life`: The expected life of the asset  (The number of periods over which the asset is depreciated.)

`per`: The period for which to calculate depreciation. (per must use the same units as life.)

1. Enter the cost of purchase in cell B1.
2. Enter the salvage value (scrap value) in cell B2.
3. Enter in years the number of periods over which the purchase will be depreciated (product life) B3.
4. Enter the value of period for which to calculate depreciation (per) in cell B4
5. Calculate the depreciation in the fifth year in cell B5 with the following formula: ```=SYD(\$B\$1,\$B\$2,\$B\$3,\$B\$4) ```
6. Press Enter. The above picture shows the purchase price of asset \$100,000 and scrap value of the asset \$1,000. And its also showing the amortized cost for each year (actual price after each period/year).  You can see, after completing the asset life (which is 8 years) now its actual price is equal to scrap value (\$1,000).