AMORDEGRC Function Explained
The AMORDEGRC Function in Microsoft Excel is used to calculate the depreciation of an asset for a specified period using the Declining Balance Method. It takes five arguments: Cost, Salvage, Life, Period, and Month. The Cost is the initial cost of the asset, the Salvage is the value of the asset at the end of its useful life, the Life is the number of periods over which the asset is being depreciated, the Period is the period for which the depreciation is being calculated, and the Month is the number of months in the first year. The function returns the depreciation amount for the specified period.
AMORDEGRC Function Syntax
AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, [basis])
- cost – The initial cost of the asset
- date_purchased – The date the asset was purchased
- first_period – The date of the first period for which you want to calculate the depreciation
- salvage – The value of the asset at the end of its useful life
- period – The number of periods over which the asset is being depreciated
- rate – The rate at which the asset is depreciated
- basis – (Optional) The type of day count basis to use. The default is 0 (US 30/360)