Easy Explanation Notes with Examples

AMORLINC function


The AMORLINC function calculates depreciation of an asset, on a prorated basis, for a specified accounting period. The function is similar to the AMORDEGRC Function except that it also accounts for depreciation of an asset even if purchased in the middle of an accounting period.


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

The syntax of the function has the following arguments:

cost – Required. The cost of the asset.

date_purchased –  Required. The date of the purchase of the asset.

first_period – Required. The date at which the first period ends.

salvage – Required. The remaining asset value after the asset has been fully depreciated.

period – Required. The useful life of the asset in which the depreciation will be calculated.

rate – Required. The rate of depreciation.

Basis – Optional. The year basis to be used in the calculation.

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)


The asset purchased in the middle of an accounting period and the AMORLINC function’s calculation for the prorated depreciation for the first year is as under:


The depreciation for remaining useful years of the asset is calculated below by using the same function except for the variation in the period on yearly basis.

Note that the AMORLINC function calculates depreciation on a prorated basis and accounts for half yearly depreciation for the ‘0’ and ‘5’ year.

Related Functions

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

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

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

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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