# Excel AMORLINC Function: Syntax, Examples & Tips - URL: https://betteranalyst.com/excel/amorlinc-function - Author: Better Analyst Formula Bot is now Better Analyst—same account, more powerful analysis.Formula Bot is now Better Analyst—same account and workflows, with more powerful analysis, dashboards, and automation. [Learn what changed](https://betteranalyst.com/formula-bot-is-now-better-analyst) The AMORLINC function calculates an asset's depreciation over time, factoring in cost, purchase date, salvage value, and lifespan. ```excel =AMORLINC(cost, date_purchased, first_period, salvage, life, [method], [month]) ``` Generate FormulaExplain Formula One free generation or explanation per browser, shared across Excel and Google Sheets. Account usage limits apply afterward. Describe the AMORLINC you need in plain EnglishGenerate Formula Need more than a single AMORLINC formula? Try our free [AI for Excel](https://betteranalyst.com/excel-ai) — it reads your entire spreadsheet, answers questions in plain English, and builds charts and analysis in the same chat. ## Parameters **`cost`**:\ The initial cost of the asset that you are calculating the depreciation for. **`date_purchased`**:\ The date when the asset was purchased, which is used to determine the start of the depreciation period. **`first_period`**:\ The date of the first period for which you want to calculate the depreciation. **`salvage`**:\ The estimated value of the asset at the end of its useful life, which is subtracted from the cost to determine the total depreciation. **`life`**:\ The number of periods (usually years) over which the asset is expected to be depreciated. **`method`**:\ (Optional) The method of depreciation to use. If omitted, the default is 0, which represents the straight-line method. **`month`**:\ (Optional) The month in which the asset was purchased. If omitted, it defaults to 1 (January). ## What is an AMORLINC Formula in Excel? The *AMORLINC* function in Excel is a financial function that calculates the depreciation for an asset using the linear method. This function is particularly useful for businesses and individuals who need to account for the depreciation of their assets over time for accounting and tax purposes. In simpler terms, the AMORLINC function helps you determine how much value an asset loses each year, making it easier to manage financial records. ## A Practical Example Imagine you have purchased a piece of machinery for your business, and you want to calculate its depreciation over a specified period. Here are the details of the asset: ### Asset Details Table: | Asset Cost | Salvage Value | Life Span (Years) | Start Period | End Period | | - | - | - | - | - | | 10,000 | 1,000 | 5 | 1 | 3 | You want to find the depreciation for the first three years of the asset's life. ## AMORLINC Formula To calculate the depreciation for the asset using the AMORLINC formula, you would use it as follows: ```excel =AMORLINC(A2, B2, C2, D2, E2) ``` ### Breakdown of the Formula: - **A2**: This is the cost of the asset (10,000). - **B2**: This is the salvage value of the asset (1,000). - **C2**: This is the life span of the asset in years (5). - **D2**: This is the start period (1). - **E2**: This is the end period (3). ## Result of the Formula When you apply the formula, it calculates the depreciation for the asset from year 1 to year 3. The output would be: | Total Depreciation for Years 1 to 3 | | - | | 5,400 | Here, the total depreciation amount is calculated based on the asset's cost, salvage value, and lifespan. ## Why Use AMORLINC? The AMORLINC function is particularly useful for businesses that need to accurately account for the depreciation of their assets over time. It allows for straightforward calculations that can simplify financial reporting and tax preparation. ## Key Takeaways: - **AMORLINC**: Calculates depreciation for an asset using the linear method. - **Financial Management**: Helps in maintaining accurate financial records for assets. - **Common Use Cases**: Ideal for businesses managing fixed assets, accounting for depreciation, and preparing financial statements. Understanding how to use the AMORLINC function can significantly enhance your financial analysis capabilities in Excel, enabling you to manage asset depreciation effectively. Happy calculating! ## Example use case You have a table where Column A contains the purchase dates of assets and Column B contains their corresponding costs. You can use the AMORLINC function to calculate the depreciation of an asset over a specified period, based on its cost and the useful life. This allows for accurate financial reporting and helps in understanding the asset's value over time, facilitating better budgeting and investment decisions without the need for complex depreciation calculations. **Beyond the AMORLINC function:** Better Analyst is a full [Excel AI](https://betteranalyst.com/excel-ai) that goes well past individual formulas. Upload any spreadsheet and ask questions in plain English — you'll get formulas, data analysis, and charts back in seconds. It's a free [AI Excel assistant](https://betteranalyst.com/excel-ai) that works with any .xlsx, .xls, or .csv file — no plugins, no Microsoft 365 required. Don't have a spreadsheet yet? 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[Create Free Account](https://betteranalyst.com/signup)[Try Formula Generator](https://betteranalyst.com/excel-ai) ## Excel how-to guides - [How To Copy Formula In Excel](https://betteranalyst.com/excel/how-to-copy-formula-in-excel) - [How To Count Unique Values In Excel](https://betteranalyst.com/excel/how-to-count-unique-values-in-excel) - [How To Create A Pivot Table In Excel](https://betteranalyst.com/excel/how-to-create-a-pivot-table-in-excel) - [How To Divide In Excel](https://betteranalyst.com/excel/how-to-divide-in-excel) - [How To Enable Macros In Excel](https://betteranalyst.com/excel/how-to-enable-macros-in-excel) - [How To Filter In Excel](https://betteranalyst.com/excel/how-to-filter-in-excel) - [How To Find Circular References In Excel](https://betteranalyst.com/excel/how-to-find-circular-references-in-excel) - [How To Find Duplicates In Excel](https://betteranalyst.com/excel/how-to-find-duplicates-in-excel) ## Explore all Excel formulas Browse our complete library of Excel formula guides Compare your options ## Decide with evidence, not a sales pitch. 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