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.