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Calculating depreciation of assets in Excel (AMORDEGRC Function)

Use

AMORDEGRC Function returns the depreciation of an asset for each accounting period till a useful life of an asset. The function is similar to the AMORLINC function except that a depreciation coefficient is applied in the calculation depending on the life of the asset.

Syntax

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

cost – The purchased value/ 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 value left after the useful life of the asset.

Period – The period over which depreciation will be calculated.

Rate – The rate of depreciation.

[basis] – The optional argument which specifies the year basis to be used:

Basis Date system
0 or omitted 360 days (NASD method)
1 Actual
3 365 days in a year
4 360 days in a year (European method)

Example

Formula:

Result:

Related Functions

DDB function calculates depreciation of an asset by using the Double Declining (DDB) Method or another method specified by the user.

SYD function returns the sum-of-years’ digits depreciation of an asset for a specific period.

SLN function uses the straight-line depreciation method to find out the depreciation of an asset for one period.

VDB function calculates the depreciation of an asset, for a specified given period, by using any selected depreciation method, such as the double declining balance method etc.

DB function calculates depreciation of an asset by using the fixed-declining balance method over the useful life of the asset.

AMORDEGRC Function returns the depreciation of an asset for each accounting period till a useful life of an asset.




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