The Excel AMORLINC Function

Related Function:

Basic 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:



- 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 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.

  A B
1 Purchase Date: 01-Jan-2011
2 First Period Date: 30-Sep-2011
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 non-numeric
- the date_purchased or the first_period arguments are not a valid dates
#NAME? -

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 Amorlinc function.

  +   Show How to Do This in Excel 2003:

  +   Show How to Do This in Excel 2007:

  +   Show How to Do This in Excel 2010 or Excel 2013:

Return to the Excel Financial Functions Page

Return to the List of All Built-In Excel Functions

Valid XHTML 1.0 Transitional Valid CSS!
Disclaimer   Privacy Policy
Copyright © 2008-2015