AMORLINC function in excel is a financial function. It is used to retrieve the depreciation value for every accounting period. It is mainly useful in prorated depreciation calculation. It is different from AMORDEGRC function in a way that in AMORDGERC function, depreciation coefficient is used depending on life of assets.
=AMORLINC(cost, date_purchased, first_period, salvage period, rate, basis)
Cost: It is cost of the assets.
Date_Purchased: It is the date on which assets is purchased.
First_Period: It is the date on which first period of assets has ended.
Salvage: It is the salvage value obtained at the end of life of asset.
Rate: It is the rate of depreciation.
Period: Total period of the asset
Basis: It is the type of year basis to be used.
- Microsoft Excel stores dates as serial numbers. By default, January 1, 1900 is serial number 1 and corresponding dates have serial number greater than 1.
- The function retrieves depreciation till the last cycle or till value of depreciation becomes more than value of the asset.
- For life of asset between 0 and 1, 1 and 2, 2 and 3, 4 and 5; #NUM error is displayed.
- It is different from AMORDEGRC function in a way that in AMORDGERC function, depreciation coefficient is used depending on life of assets.
In this example, various arguments are entered in column A and their values are entered in column B and AMORLINC function is used to retrieve the result in column D.