# Documentation/Calc Functions/AMORDEGRC

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## Function name:

AMORDEGRC

## Category:

Financial Analysis

## Summary:

Calculates the depreciation for a period using degressive depreciation, applying a depreciation factor that is dependent on the lifetime of the asset.

## Syntax:

AMORDEGRC(**Cost**; **Date Purchased**; **First Period**; **Salvage**; **Period**; **Rate**[; **Basis**])

## Returns:

Returns a non-negative real number.

## Arguments:

**Cost** is a positive real number or a reference to the cell containing that number which is the acquisition cost.

**DatePurchased** is a date or a reference to a cell containing that date which is the date of acquisition.

**FirstPeriod** is a date or a reference to a cell containing that date which is the end date of the first depreciation period.

**Salvage** is a positive real number or a reference to the cell containing that number which is the salvage value of the asset at the end of the depreciable life.

**Period** is a non-negative integer or a reference to the cell containing that number which is the settlement period to be considered. The value of 0 represents the period from the purchase date to the end of the first period. A value of 1 is the next year, and so on.

**Rate** is a positive real number (expressed as a percentage or a fraction) or a reference to the cell containing that number which is the rate of depreciation.

**Basis** is a positive integer from 0 to 4 or a reference to a cell containing that integer which is chosen from a list of options and indicates how the year is to be calculated. For more information, visit Wikipedia's Day count convention page.

Basis | Calculation |
---|---|

0 or missing | US method (NASD), 12 months of 30 days each |

1 | Exact number of days in months, exact number of days in year. |

2 | Exact number of days in month, year has 360 days. |

3 | Exact number of days in month, year has 365 days. |

4 | European method, 12 months of 30 days each. |

- If either of
**DatePurchased**or**FirstPeriod**are not valid dates then the function returns a value (#VALUE!) error. For more details about dates visit help. - If either
**Rate**or**Cost**is less than or equal to 0 then the function will return an error value. - If either
**Salvage**or**Period**is less than 0 then the function will return an error value. - If
**Period**is a non-integer non-negative real value, then it is truncated to an integer. - If the
**DatePurchased**date is after the**FirstPeriod**date then the function returns an error value. - If
**Basis**is a non-integer value, then the function uses its floor value, i.e. it is truncated to an integer value. - After truncation if
**Basis**is any number except 0,1,2,3,4 or missing,then the function will return an error value.

## Additional details:

- The coefficients for depreciation for AMORDEGRC are:

Life time of an asset t = 1/Rate | Coefficient |
---|---|

0 <= t < 3 | 1 |

3 <= t < 5 | 1.5 |

5 <= t <=6 | 2 |

6 < t | 2.5 |

Here for the Life of assets is (1/**Rate**).

- If the asset was purchased in the middle of the period, the depreciation is factored accordingly. Hence for period 0, the deprecation is equivalent to ROUND(Depreciation Factor *
**Cost*****Rate*** YEARFRAC (**DatePurchased**;**FirstPeriod**;**Basis**)). And for period 1 the depreciation is equivalent to ROUND(Depreciation Factor ***Rate*** (**Cost**– Depreciation from Previous Period)). And so on… - The function will not depreciate beyond the point at which the total depreciation is greater than
**Cost**–**Salvage**. - For more details on amortization, visit Wikipedia.

## Examples:

Formula | Description | Returns |
---|---|---|

=AMORDEGRC(1500;"2001-04-01";"2001-06-15";454;2;0.19;2) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. | 325 |

=AMORDEGRC(1500;"2001-04-01";"2001-06-15";454;2;19%;) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. Here the basis is the US method (0) whenever either empty or no argument is passed. | 326 |

=AMORDEGRC(1500;"2001-04-01";"2001-06-15";454;2;0.9;0) | The value of 0 is returned because the asset depreciates so rapidly relative to its Salvage value because of the high Rate. |
0 |

=AMORDEGRC(1500,DATE(1,4,1),DATE(1,6,15),454,2,0.19,2) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. DATE function can also be used for passing dates. | 325 |

=AMORDEGRC(1500,36982 ,37057 ,454,2,0.19,2) | The function calculates the amount of depreciation for a period as degressive amortization for the given value of arguments. Numbers can also be used for passing dates. | 325 |

## Related LibreOffice functions:

## ODF standard:

None

## Equivalent Excel functions:

AMORDEGRC