# Learn =AMORLINC() function – How to use with Examples

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:

What is the straight-line method of depreciation?

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.

What is the basis argument in the =`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.

Can the =`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.

What is the difference between the =SLN() and =`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.

How do I round the result of the =`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. 