AMORLINC function

This article describes the formula syntax and usage of the AMORLINC function in Microsoft Excel.

Description

Returns the depreciation for each accounting period. This function is provided for the French accounting system. If an asset is purchased in the middle of the accounting period, the prorated depreciation is taken into account.

Syntax

AMORLINC(cost, date_purchased, first_period, salvage, period, rate, [basis])

Important: Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2008,5,23) for the 23rd day of May, 2008. Problems can occur if dates are entered as text.

The AMORLINC function syntax has the following arguments:

• Cost    Required. The cost of the asset.

• Date_purchased    Required. The date of the purchase of the asset.

• First_period    Required. The date of the end of the first period.

• Salvage    Required. The salvage value at the end of the life of the asset.

• Period    Required. The period.

• Rate    Required. The rate of depreciation.

• Basis    Optional. The year basis to be used.

Basis	Date system
0 or omitted	360 days (NASD method)
1	Actual
3	365 days in a year
4	360 days in a year (European method)

Remarks

Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.

Example

Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.

Data	Description
2400	Cost
39679	Date purchased
39813	End of the first period
300	Salvage value
1	Period
0.15	Depreciation rate
1	Actual basis (see above)
Formula	Description	Result
=AMORLINC(A2,A3,A4,A5,A6,A7,A7)	First period depreciation	360