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:
BasisDay Count Basis
0 (or omitted)US (NASD) 30/360
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 the first_period arguments should be entered into the function as either:



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.

1Purchase Date:01-Jan-2011
2First 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

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 if either:

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

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.

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