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The Excel AMORLINC Function
Related Function:
AMORDEGRCBasic Description
The Excel Amorlinc function calculates the prorated linear depreciation of an asset for each accounting period. The function has been introduced into Excel for users of the French accounting system.
The syntax of the Amorlinc function is :
AMORLINC( 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 asset's lifetime 
period    An integer that specifies the period over which the depreciation is to be calculated 
rate    The rate of depreciation of the asset 
[basis]    An optional integer argument which specifies the financial day count basis that is used in the calculation. Possible values are: 
Basis  Day Count Basis 

0 (or omitted)  US (NASD) 30/360  1  actual/actual  2  actual/360  3  actual/365  4  European 30/360 

  The financial day count basis rules are explained in detail on the Wikipedia Day Count Convention page 
Note that the date_purchased and the first_period arguments should be entered into the function as either:
 References to cells containing dates
or Dates returned from formulas
Warning:
 If you attempt to input the date arguments as text, there is a chance that these may be interpreted differently, due to the date system and date interpretation settings on your computer.
 Although you can enter dates as serial numbers, this is not recommended, as date serial numbering varies across different computer systems.
Excel Amorlinc Function Example
In the following example, the Excel Amorlinc function is used to calculate the depreciation of an asset during the first period. The asset was purchased on 01Jan2011, at a cost of €150 and the first period ends on 30Sep2011. The asset depreciates at a rate of 20% per year and has a salvage value of €20. The European day count basis is used.
 A  B 

1  Purchase Date:  01Jan2011 

2  First Period Date:  30Sep2011 

3  =AMORLINC( 150, B1, B2, 20, 1, 20%, 4 ) 

The function returns the value 30.
 i.e. the asset depreciates by €30.00 during the first period.
Note that, in the above example, as recommended, the date arguments have been input to the function as references to cells containing dates.
Further details of the Excel Amorlinc function can be found on the Microsoft Office website.
Amorlinc Function Errors
If you get an error from the Amorlinc function, this is likely to be one of the following:
Common Errors
#NUM!    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)

#VALUE!    Occurs if either:  any of the supplied arguments are nonnumeric
 the date_purchased or the first_period arguments are not a valid dates

#NAME?    Occurs when Analysis ToolPak addin is not enabled in your Excel. You will need to enable the addin if you want to use the Excel Amorlinc function.
+ Show How to Do This in Excel 2003:
 From the Tools dropdown menu, select the option AddIns ...
 An 'AddIns' window will pop up. From this, select the option Analysis ToolPak and click OK
+ Show How to Do This in Excel 2007:
 Click the Microsoft button on the top left of your spreadsheet and select
the Excel Options button
 From the menu on the left hand side, select AddIns
 In the 'Manage:' box, select Excel Addins and click Go...
 An 'AddIns' window will pop up. From this, select the option Analysis ToolPak and click OK
+ Show How to Do This in Excel 2010 or Excel 2013:
 Click the File tab (top left of your spreadsheet) and select Options
 From the menu on the left hand side, select AddIns
 If the window that pops up doesn't show the 'Addins' list, use the 'Manage:'
dropdown menu (at the bottom of the window) to select Excel Addins. Click Go...
 From the 'AddIns' window, select the option Analysis ToolPak and click OK
