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 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 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.