The Excel AMORDEGRC Function

Related Function:

Basic Description

The Excel Amordegrc function calculates the prorated linear depreciation of an asset for each accounting period, with a depreciation coefficient applied, depending on the life of the asset. The function has been introduced into Excel for users of the French accounting system.

The syntax of the Amordegrc function is :

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

Where the arguments are as follows:

cost-The cost of the asset
date_purchased-The date of purchase of the asset
first_period-The date of the end of the first period
salvage-The salvage value, at the end of the lifetime of the asset
period-The number of the period over which the depreciation is to be calculated
rate-The asset's rate of depreciation
[basis]-An optional integer argument which specifies the financial day count basis to be is used. This may be any of the following values:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
4European 30/360
A detailed description of the financial day count basis rules is provided on the Wikipedia Day Count Convention page

Note that the date arguments should be entered into the function as either:



Excel Amordegrc Function Example

In the following example, the Excel Amordegrc function is used to calculate the depreciation of an asset during the first period. The asset was purchased on 01-Jan-2011, at a cost of €150 and the first period ends on 30-Sep-2011. The asset depreciates at a rate of 20% per year and has a salvage value of €20. The European day count basis is used.

1Purchase Date:01-Jan-2011
2First Period Date:30-Sep-2011
3=AMORDEGRC( 150, B1, B2, 20, 1, 20%, 4 )

The function returns the value 42.

- i.e. the asset depreciates by €42.00 during the first period.

Note that, as recommended by Microsoft, the date arguments have been input to the above function as references to cells containing dates.

Further details and examples of the Excel Amordegrc function can be found on the Microsoft Office website.

Amordecrc Function Errors

If you get an error from the Amordegrc function, this is likely to be one of the following:

Common Errors

Occurs if either:

  • any of the supplied arguments are non-numeric
  • the supplied date_purchased or first_period are not a valid dates

Occurs if either:

  • the date_purchased is > first_period
  • the supplied salvage value is > cost
  • Invalid numbers are supplied for the salvage, period, rate or basis arguments
    (i.e. if either: salvage < 0, period < 0, rate ≤ 0, or basis is any number other than 0, 1, 2, 3 or 4)

Occurs when Analysis ToolPak add-in is not enabled in your Excel.
You will need to enable the add-in if you want to use the Excel Amordegrc function.

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