Excel functions

How to Use the AMORLINC Function in Excel

Welcome to our comprehensive guide on the AMORLINC function in Excel and Google Sheets. This function is specifically designed to calculate the linear depreciation of an asset for a particular accounting period, utilizing the straight-line method. In this guide, we will explore the workings of this function and demonstrate how it can be effectively used in your spreadsheets.

Syntax

The syntax for the AMORLINC function is consistent across both Excel and Google Sheets:

=AMORLINC(cost, date_purchased, first_period, salvage, period, rate, basis)
  • cost: The initial cost of the asset.
  • date_purchased: The purchase date of the asset.
  • first_period: The date of the first period for which depreciation is calculated.
  • salvage: The salvage value of the asset at the end of its useful life.
  • period: The specific period for which depreciation is calculated.
  • rate: The depreciation rate.
  • basis: The convention used for counting days.

Examples

Let’s examine a practical example to see how the AMORLINC function is applied:

Cost Date Purchased First Period Salvage Period Rate Basis Depreciation for the Period
1000 01/01/2021 01/01/2021 100 6 0.1 0 =AMORLINC(A2, B2, C2, D2, E2, F2, G2)

In this illustration, the AMORLINC function calculates depreciation for an asset initially costing $1000, acquired on 01/01/2021, with a salvage value of $100. Depreciation is to be assessed for the 6th period, applying a depreciation rate of 10%, and using a day count basis of 0.

The output will be the depreciation value for the designated period based on the given parameters.

With this knowledge, you can now seamlessly integrate the AMORLINC function into your Excel or Google Sheets spreadsheets to efficiently calculate the linear depreciation of assets.

More information: https://support.microsoft.com/en-us/office/amorlinc-function-7d417b45-f7f5-4dba-a0a5-3451a81079a8

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