AMORLINC function

The AMORLINC function returns the depreciation for an accounting period, or the prorated depreciation if the asset was purchased in the middle of a period.This function is available for users of the French accounting system.

Parts of an AMORLINC function

AMORLINC(cost, purchase_date, first_period_end, salvage, period, rate, [basis])

Part Description Notes
cost The asset's purchase cost  
purchase_date The date the asset was purchased
  • The purchase date should be before the first period end date.
first_period_end The end date of the first period  
salvage The asset's value at the end of its life (i.e. its salvage value)  
period The period for which to calculate depreciation
  • The period should be a non-negative value. Fractional values less than 1 automatically round up to 1, and fractional values greater than 1 round down.
rate The annual depreciation rate.
  • The depreciation rate may be specified as either a decimal or a percentage.
day_count_convention (Optional) An indicator of what day count method to use, marked 0 by default
  • 0 indicates US (NASD) 30/360. This assumes 30-day months and 360-day years, per the National Association of Securities Dealers (NASD) standard, and performs specific adjustments to entered dates that fall at the ends of months.
  • 1 indicates Actual/Actual. This calculates based on the actual number of days between the specified dates and the actual number of days in the intervening years.
  • 2 indicates Actual/360. This calculates based on the actual number of days between the specified dates, but assumes a 360-day year.
  • 3 indicates Actual/365. This calculates based on the actual number of days between the specified dates, but assumes a 365-day year.
  • 4 indicates European 30/360. Similar to 0, this calculates on a 30-day month and a 360-day year, but adjusts end-of-month dates according to European financial conventions.
basis (Optional) The year basis to use  

Sample formulas

AMORLINC(1000, "7/20/1969", "8/20/1969", 100, 6, 15%)

AMORLINC(1234.56, DATE(1969, 7, 20), DATE(1969, 8, 20), 123.45, 6.5, 0.15, 1)

AMORLINC(A1, A2, A3, A4, 6, 15%)

Examples

This example shows the sixth period depreciation of an asset with a purchase cost of $1,000, a purchase date of 7/20/1969, a first period end date of 8/20/1969, a salvage value of $100, and a depreciation rate of 15% using the default 30-day month and 360-day year counting convention:

  A B
1 Cost $1,000
2 Purchase date 7/20/1969
3 First period end date 8/20/1969
4 Salvage value $100
5 Period 6
6 Depreciation rate 15%
7 Result 137.5
8 Formula =AMORLINC(B1, B2, B3, B4, B5, B6)

 

This example shows the sixth period depreciation of an asset with a purchase cost of $1,000, a purchase date of 7/20/1969, a first period end date of 8/20/1969, a salvage value of $100, and a depreciation rate of 15% using the actual days-per-month and actual days-per-year day counting convention:

  A B
1 Cost $1,000
2 Purchase date 7/20/1969
3 First period end date 8/20/1969
4 Salvage value $100
5 Period 6
6 Depreciation rate 15%
7 Day count convention 1
8 Formula =AMORLINC(B1, B2, B3, B4, B5, B6, B7)
9 Result 137.26

Related functions

  • DDB: The DDB function calculates the depreciation of an asset for a specified period using the double-declining balance method.
  • VDB: The VDB function returns the depreciation of an asset for a particular period (or partial period).
  • DB: The DB function calculates the depreciation of an asset for a specified period using the arithmetic declining balance method.
  • SLN: The SLN function calculates the depreciation of an asset for one period using the straight-line method.
  • SYD: The SYD function calculates the depreciation of an asset for a specified period using the sum of years digits method.
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