AMORLINC Function in Excel (5 Easy Examples)

The AMORLINC function in Excel returns depreciation for each accounting period under the French accounting system. It prorates period 0 when an asset is purchased partway through the first period.

The function uses a linear rate, purchase date, first-period end date, and salvage value. It is useful when an existing model specifically requires this French-system calculation.

In this article, I’ll show you how to calculate an asset register, roll forward book value, compare purchase dates and bases, and contrast AMORLINC with AMORDEGRC.

Table of Contents

AMORLINC Function Syntax in Excel

The AMORLINC function uses six required arguments and one optional argument:

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

cost is the asset’s purchase cost.
date_purchased is the purchase date.
first_period is the end date of the first accounting period.
salvage is the asset’s value at the end of its useful life.
period is the accounting period for which you want depreciation. Period 0 is the prorated first period.
rate is the depreciation rate.
basis is optional. Use 0 or omit it for NASD 360, 1 for Actual, 3 for Actual/365, or 4 for European 360.

When to Use AMORLINC Function

Calculate period depreciation in a model based on the French linear method.
Prorate depreciation when an asset is purchased during the first accounting period.
Build a schedule that stops at the asset’s salvage value.
Compare results under AMORLINC’s supported day-count bases.
Check how a linear result differs from AMORDEGRC’s coefficient method.

Example 1: Calculate a French Asset Register

Let’s start with several assets and different selected periods.

Below are four assets with costs, dates, salvage values, periods, rates, and bases. The Depreciation column is ready for formulas.

I want to calculate the depreciation amount for each asset row.

Enter this formula in I2, then fill it down through I5:

=AMORLINC(B2,C2,D2,E2,F2,G2,H2)

Each row passes one asset’s inputs to AMORLINC. The saved results are $9,600.00, $7,200.00, $4,375.00, and $16,000.03.

The relative references change as you fill the formula down. Native Excel returned #VALUE! when these inputs were supplied as plain ranges, so the workbook uses scalar formulas.

Pro Tip: Keep more decimal places in a rate such as 16.6667% when the rate comes from another calculation. Rounding the input can slightly change depreciation.

Example 2: Roll Forward Ending Book Value

A complete schedule shows the first-period proration and the point where depreciation stops.

Below are periods 0 through 5 beside empty Depreciation and Ending Book Value columns. The asset card shows a $50,000 cost and $5,000 salvage value.

I first want to calculate depreciation for each period.

Enter this formula in B2, then fill it down through B7:

=AMORLINC($F$2,$F$3,$F$4,$F$5,A2,$F$6,$F$7)

=AMORLINC($F$2,$F$3,$F$4,$F$5,A2,$F$6,$F$7) in B2

The absolute references keep the asset card fixed. The relative A2 reference moves through periods 0 to 5.

Next, subtract period 0 depreciation from the original cost:

=$F$2-B2

Cell C2 returns $45,000.00 after subtracting the $5,000.00 period 0 charge from the $50,000 cost.

For the remaining periods, subtract the current depreciation from the preceding book value:

=C2-B3

Enter this formula in C3, then fill it down through C7. The ending book value reaches $5,000.00 in period 4 and stays at the salvage value.

AMORLINC returns zero depreciation in period 5 because the depreciable amount has already been exhausted.

Example 3: Compare First-Period Purchase Dates

The purchase date changes how much of the annual depreciation belongs to period 0.

Below are four purchase dates beside an empty Period 0 Depreciation column. The shared asset card uses an Actual basis and a 10% rate.

I want to compare the first-period amount for each purchase date.

Enter this formula in B2, then fill it down through B5:

=AMORLINC($E$2,A2,$E$3,$E$4,0,$E$5,$E$6)

=AMORLINC($E$2,A2,$E$3,$E$4,0,$E$5,$E$6) in B2

The relative A2 reference changes the purchase date. The absolute references keep the cost, period end, salvage, rate, and basis fixed.

A January 1 purchase returns $3,989.04.

Moving the purchase to April 1, July 1, and October 1 reduces the result to $3,002.74, $2,005.48, and $997.26.

Example 4: Compare Supported Day-Count Bases

AMORLINC supports four basis codes, and their day counts can produce different first-period amounts.

Below are basis codes 0, 1, 3, and 4 beside their conventions. A shared asset card supplies the remaining inputs.

I want to calculate period 0 depreciation under each supported basis.

Enter this formula in C2, then fill it down through C5:

=AMORLINC($F$2,$F$3,$F$4,$F$5,0,$F$6,A2)

=AMORLINC($F$2,$F$3,$F$4,$F$5,0,$F$6,A2) in C2

The basis reference changes by row while the other inputs remain fixed.

Basis 0 returns $5,430.00. Bases 1 and 3 both return $5,444.38 for these dates, while basis 4 returns $5,460.00.

Basis 2 is not in Microsoft’s accepted list for AMORLINC. Do not reuse a basis table from another financial function without checking its documented options.

Example 5: Compare AMORLINC and AMORDEGRC

The similarly named functions use the same inputs but follow different depreciation methods.

Below is one asset card with empty result cells for AMORLINC and AMORDEGRC.

I first want to calculate period 1 depreciation with AMORLINC.

Here is the formula:

=AMORLINC(B1,B2,B3,B4,B5,B6,B7)

AMORLINC returns $14,000.00 using its linear method.

Now calculate the same period with AMORDEGRC:

=AMORDEGRC(B1,B2,B3,B4,B5,B6,B7)

AMORDEGRC returns $19,592.00 because it applies a coefficient based on asset life. Microsoft has deprecated AMORDEGRC and retains it only for old-workbook compatibility.

The two functions are not interchangeable. Changing one to the other changes the depreciation method and result.

Tips & Common Mistakes

Use real Excel dates or the DATE function. Text dates can cause errors.
Basis accepts 0, 1, 3, or 4. Basis 2 is not supported by AMORLINC.
Plain range arguments returned #VALUE! in native Excel testing. Use one scalar formula per row and fill down.
Period 0 is the prorated first period. Later period numbers return the following accounting periods.
Use separate first-row and roll-forward formulas for book value. The first subtracts from cost; later rows subtract from the previous balance.
AMORLINC is not available in Excel for the web.

I covered an asset register, a book-value schedule, first-period proration, basis choices, and the difference between AMORLINC and AMORDEGRC.

I hope you found this article helpful.