The =AMORLINC() function is an Excel function that calculates the depreciation of an asset for a specified period using the straight-line method. It returns the depreciation of an asset for a single period, based on a fixed rate and a constant value. The function is commonly used in financial and accounting analysis to calculate the amortization of assets.
How to use =AMORLINC() function?
The syntax for the =AMORLINC() function is as follows: =AMORLINC(cost, date_purchased, first_period, salvage, period, rate, [basis]).
- Cost: the initial cost of the asset.
- Date_purchased: the date the asset was purchased.
- First_period: the date of the first period.
- Salvage: the value of the asset at the end of its useful life.
- Period: the period for which you want to calculate depreciation.
- Rate: the rate of depreciation per period.
- [Basis]: Optional argument that specifies the day count basis to use for the calculation.
Examples of AMORLINC – use in formula:
=AMORLINC(2000, "1/1/2022", "6/30/2022", 200, 1, 0.1, 0) returns 100.This calculates the depreciation of an asset purchased for $2000 on 1/1/2022 with a salvage value of $200 and a depreciation rate of 10% per period for the first period ending on 6/30/2022.
=AMORLINC(3000, "1/1/2022", "12/31/2022", 500, 1, 0.05, 1) returns 125.
This calculates the depreciation of an asset purchased for $3000 on 1/1/2022 with a salvage value of $500 and a depreciation rate of 5% per period for the first period ending on 12/31/2022, using the actual/actual basis.
=AMORLINC(10000, "1/1/2021", "12/31/2022", 1000, 2, 0.1, 0) returns 1050.
This calculates the total depreciation of an asset purchased for $10000 on 1/1/2021 with a salvage value of $1000 and a depreciation rate of 10% per period for two periods ending on 12/31/2022.
=AMORLINC(5000, "1/1/2021", "6/30/2021", 1000, 1, 0.2, 1) returns 800.
This calculates the depreciation of an asset purchased for $5000 on 1/1/2021 with a salvage value of $1000 and a depreciation rate of 20% per period for the first period ending on 6/30/2021, using the actual/actual basis.
=AMORLINC(8000, "1/1/2023", "12/31/2023", 2000, 1, 0.15, 0) returns 600.
This calculates the depreciation of an asset purchased for $8000 on 1/1/2023 with a salvage value of $2000 and a depreciation rate of 15% per period for the first period ending on 12/31/2023.
List of Similar to AMORLINC functions:
- =DB(): calculates the depreciation of an asset for a specified period using the declining balance method.
- =SLN(): calculates the straight-line depreciation of an asset for one period.
- =DDB(): calculates the depreciation of an asset for a specified period using the double-declining balance method.
FAQs about the AMORLINC function:
The straight-line method of depreciation is a method of allocating the cost of an asset over its useful life by equal amounts each period.
AMORLINC() function? The basis argument in the =AMORLINC() function specifies the day count basis to use for the calculation. The default is 0 (or US (NASD) 30/360), but you can also specify 1 (actual/actual) or 2 (actual/360), among other options.
AMORLINC() function be used to calculate depreciation for multiple periods? No, the =AMORLINC() function only calculates depreciation for a single period. To calculate depreciation for multiple periods, you would need to use the function multiple times or create a formula AMORLINC references the function with changing inputs.
AMORLINC() functions? The =SLN() function calculates the straight-line depreciation of an asset for a single period, whereas the =AMORLINC() function calculates the depreciation of an asset for a specified period using the straight-line method.
AMORLINC() function to a certain number of decimal places? You can use the ROUND function to round the result of the =AMORLINC() function to a certain number of decimal places. For example, if you want to round the result to two decimal places, you can use the formula =ROUND(AMORLINC(…), 2) instead of just =AMORLINC(…). This will round the result to two decimal places.
Learn More MS Excel Functions
- Real-World uses of Excel’s ATAN Function
- Comparing the Use of ATAN, ATAN2, and TAN Functions in Excel
- Mastering the ATAN Function in Excel: Tips and Tricks
- Mastering Excel: A Step-by-Step Guide on How to Filter Two Columns Using Advanced Filter Function
- Compare of ACCRINT & YIELD Functions – When to Use Each one
- Real-World Applications of Excel’s ACCRINT Function
- Mastering the ACCRINT Function in Excel: Tips and Tricks for Efficient Accrued Interest Calculations
- A Beginner’s Guide to AVERAGEIF Formula in Excel
- Learn VBA DIR Function – An Easy Explanation with Examples
- Learn =AVERAGEA() function – How to use with examples
- Learn =AVERAGE() function How to use with examples
- Learn =AVEDEV() Function – How to use with examples
- Learn =ATAN2() function – How to use with example
- Learn =ATAN() function – How to use with examples
