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.

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