AMORDEGRC function

This article describes the formula syntax and usage of the AMORDEGRC function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.

Description

Returns the depreciation for each accounting period. This function is provided for the French accounting system. If an asset is purchased in the middle of the accounting period, the prorated depreciation is taken into account. The function is similar to AMORLINC, except that a depreciation coefficient is applied in the calculation depending on the life of the assets.

Syntax

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

 Important   Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2008,5,23) for the 23rd day of May, 2008. Problems can occur if dates are entered as text.

The AMORDEGRC function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):

  • Cost    Required. The cost of the asset.
  • Date_purchased    Required. The date of the purchase of the asset.
  • First_period    Required. The date of the end of the first period.
  • Salvage    Required. The salvage value at the end of the life of the asset.
  • Period    Required. The period.
  • Rate    Required. The rate of depreciation.
  • Basis    Optional. 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)

Remarks

  • Microsoft Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2008 is serial number 39448 because it is 39,448 days after January 1, 1900.
  • This function will return the depreciation until the last period of the life of the assets or until the cumulated value of depreciation is greater than the cost of the assets minus the salvage value.
  • The depreciation coefficients are:
Life of assets (1/rate) Depreciation coefficient
Between 3 and 4 years 1.5
Between 5 and 6 years 2
More than 6 years 2.5
  • The depreciation rate will grow to 50 percent for the period preceding the last period and will grow to 100 percent for the last period.
  • If the life of assets is between 0 (zero) and 1, 1 and 2, 2 and 3, or 4 and 5, the #NUM! error value is returned.

Example

The example may be easier to understand if you copy it to a blank worksheet.

ShowHow do I copy an example?

  1. Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
    Important: Do not select the row or column headers.

Selecting an example from Help

Selecting an example from Help

  1. Press CTRL+C.
  2. Create a blank workbook or worksheet.
  3. In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
    Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
  4. To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.

After you copy the example to a blank worksheet, you can adapt it to suit your needs.

 
1
2
3
4
5
6
7
8
9
10
A B
Data Description
2400 Cost
8/19/2008 Date purchased
12/31/2008 End of the first period
300 Salvage value
1 Period
15% Depreciation rate
1 Actual basis (see above)
Formula Description (Result)
=AMORDEGRC(A2,A3,A4,A5,A6,A7,A8) First period depreciation (776)

 Note    In Excel Online, to view the result in its proper format, select the cell, and then on the Home tab, in the Number group, click the arrow next to Number Format, and click General.

 
 
Applies to:
Excel 2010, Excel Web App, SharePoint Online for enterprises, SharePoint Online for professionals and small businesses