Author: Oscar Cronquist Article last updated on January 08, 2019

The AMORLINC function calculates the depreciation for each accounting period. This function is designed for the French accounting system.

Formula in cell C6:

=AMORLINC (C2, C3, C4, C5, C6, C7, C8)

Excel Function Syntax

AMORLINC(cost, date_purchased, first_period, salvage, period, rate, [basis])

Arguments

cost Required.
date_purchased Required.
first_period Required. The date of the end of the first period.
salvage Required. The salvage value.
period Required.
rate Required. The rate of depreciation.
[basis] Required. The year count.
Basis Day count
0 (default) 360 (NASD)
1 Actual
3 365
4 European 360

The depreciation rate will grow to 50 percent for the period before the last period and grows to 100 percent for the last period.

Comments

The prorated depreciation is taken into account if an asset is purchased in the middle of the accounting period.

Keep in mind to use the DATE function if you enter dates in the function instead of using cell references.

For example,

=AMORLINC(C2, DATE(2018,9,21), DATE(2018,12,31),C5,C6,C7,C8)