Related Function:

The AMORDEGRC function calculates the prorated linear depreciation of an asset for each accounting period (with depreciation coefficient applied, depending on the life of the asset). 

  • This function has been introduced into Excel for users of the French accounting system.

Syntax

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

Arguments

Argument Description
cost The cost of the asset
date_purchased The date of purchase of the asset
first_period The date of the end of the first period
salvage The salvage value, at the end of the lifetime of the asset
period The number of the period over which the depreciation is to be calculated
rate The asset’s rate of depreciation
[basis] Optional. Defines the day count basis to be used in the calculation

  [basis] Day Count Basis
  0 (or omitted) US (NASD) 30/360
  1 actual/actual
  2 actual/360
  3 actual/365
  4 European 30/360

The financial day count basis rules are explained further on the Wikipedia Day Count Convention page

Note: The date arguments should be entered into the function as either:

  • References to cells containing dates, or
  • Dates returned from formulas

If you attempt to input these date arguments as text, Excel may misinterpret them, due to different date systems, or date interpretation settings.

Warning: Although you can input the date arguments as date serial numbers, this is not recommended as date serial numbering does vary across different computer systems.

Examples

  A B C D
1 Data      
2 €2,500 Purchase price    
3 01-Jan-2014 Purchase date    
3 30-Sep-2014 End first period date    
4 €200 Salvage value    
5 1 Period    
6 15% Depreciation rate    
7 1 Actual basis    
8        
9 Formula Result Notes
10 =AMORDEGRC(A2,A3,A4,A5,A6,A7) €675.00 First period depreciation of an asset