The Excel AMORLINC Function

Related Function:
AMORDEGRC

Basic Description

The Excel Amorlinc function calculates the prorated linear depreciation of an asset for each accounting period. The function is provided 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:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
1actual/actual
2actual/360
3actual/365
4European 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 first_period arguments should be entered into the function as either:

or

Warning: If you attempt to enter dates as text, there is a chance that Excel may misinterpret them due to different date systems, or date interpretation settings on your computer.


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 01-Jan-2015, at a cost of €150 and the first period ends on 30-Sep-2015. The asset depreciates at a rate of 20% per year and has a salvage value of €20. The European day count basis is used.

 AB
1Purchase Date:01-Jan-2015
2First Period Date:30-Sep-2015
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 supplied to the function as references to cells containing dates.


See the Microsoft Office website for further information on the Excel Amorlinc function.


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:

  • The supplied date_purchased or first_period arguments are not valid Excel dates;
  • Any of the supplied arguments are non-numeric.