# AMORLINC

The `AMORLINC` function returns the linear depreciation of an asset for a single period, based on the number of periods of use. This function is commonly used in financial accounting to determine the depreciation of an asset. It uses the following parameters: cost, purchase date, first period end, salvage value, number of periods, interest rate, and optionally a basis value.

## Usage

Use the `AMORLINC` formula with the syntax shown below, it has 6 required parameters and 1 optional parameter:

Parameters:
1. cost (required):
The initial cost or value of the asset.
2. purchase_date (required):
The date the asset was purchased, in date, datetime or string format.
3. first_period_end (required):
The date the first period ends, in date, datetime or string format.
4. salvage (required):
The estimated salvage value of the asset at the end of its useful life.
5. period (required):
The period for which you want to calculate the depreciation, in number of periods.
6. rate (required):
The rate of depreciation per period, expressed as a decimal.
7. basis (optional):
An optional argument that specifies the day count basis to use. If omitted, the default is 0.

## Examples

Here are a few example use cases that explain how to use the `AMORLINC` formula in Google Sheets.

### Calculating Asset Depreciation

Use `AMORLINC` to calculate the depreciation of an asset for a single period, based on the number of periods of use.

### Tracking Asset Value Over Time

Use `AMORLINC` to track the value of an asset over time by calculating its depreciation for multiple periods.

### Adjusting Book Value of an Asset

Use `AMORLINC` to adjust the book value of an asset for depreciation each period, as required by financial accounting standards.

## Common Mistakes

`AMORLINC` not working? Here are some common mistakes people make when using the `AMORLINC` Google Sheets Formula:

### Incorrect cost value

One common mistake is to enter the wrong value for the cost parameter. Make sure that you are using the correct value for the asset's cost.

### Invalid purchase date

Another mistake is to enter an invalid purchase date. Check that the date is in a valid format and that it is a date that occurs before the first period end date.

### Incorrect period value

A mistake that can occur is entering the wrong period value. Double-check that you are using the correct period value for your calculation.

### Missing salvage value

One common mistake is to leave out the salvage value parameter. Make sure you enter a value for this parameter.

### Incorrect basis value

Another mistake is to enter an incorrect basis value. Double-check that you are using the correct basis value for your calculation.

The following functions are similar to `AMORLINC` or are often used with it in a formula:

• `SLN`

The SLN function calculates the depreciation of an asset for a single period using the straight-line method. This method assumes that the asset loses an equal amount of value each year over its useful life. The function takes three arguments: the initial cost of the asset, its salvage value at the end of its useful life, and the total number of periods of its useful life.

• `DB`

The `DB` function calculates the depreciation of an asset for a specified period using the fixed-declining balance method. This method uses a fixed rate to calculate depreciation, with a higher depreciation rate in the early years of the asset's life. The function is commonly used in accounting and financial analysis.

• `DDB`

The `DDB` function returns the depreciation of an asset using the double-declining balance method. This function is most commonly used to calculate depreciation of an asset over time. The calculation takes into account the initial cost of the asset, its salvage value, the asset's estimated life, and the end of the period for which depreciation is being calculated.

You can learn more about the `AMORLINC` Google Sheets function on Google Support.