The AMORLINC function is a financial function in Excel that is used to calculate the linear depreciation of an asset for a specific accounting period. It helps you determine the amortization of an asset for a given period based on a specified start date.
AMORLINC(cost, date_purchased, first_period, salvage, period, rate, basis)
|cost:||The initial cost of the asset.|
|date_purchased:||The date when the asset was purchased.|
|first_period:||The first period for which you want to calculate depreciation.|
|salvage:||The value at the end of the depreciation (optional).|
|period:||The period for which you want to calculate depreciation.|
|rate:||The rate of depreciation for the asset.|
|basis:||The basis for calculating depreciation (optional).|
How to Use
To use the AMORLINC function, follow this example:
=AMORLINC(1000, "01/01/2023", 1, 100, 12, 0.1, 0)
This formula calculates the depreciation for an asset that costs $1,000, was purchased on January 1, 2023, has a salvage value of $100, and is depreciated monthly at a rate of 10% per period, using a basis of 0.
Make sure to adjust the arguments in the function to match your specific scenario.
Keep in mind that the AMORLINC function is primarily used for financial and accounting purposes to calculate depreciation. It is helpful for businesses and individuals who need to account for asset value changes over time.
For a more detailed explanation of terms used in the AMORLINC function, you can refer to financial dictionaries or online resources for accounting and finance terminology. Understanding concepts like depreciation, salvage value, and depreciation basis is essential for accurate use of this function.