AMORDEGRC
Calculate depreciation of asset using french reducing balance method.
Syntax of Excel AMORDEGRC formula:
=AMORDEGRC(cost,date_purchased,first_period,salvage,period,rate,[basis])
In words:
=Calculate depreciation using french reducing balance method for asset with this (Cost, acquisition date, with first accounting period ending at this date, residual value, for this period, at this rate, [using this days calculation basis])
Explanation
Under this method depreciation coefficient is bonded with useful life of asset and the same is applied when this formula is used. Depreciation coefficient is simply an integer by which depreciation is accelerated. User has no control over selection of coefficient in this method as Excel automatically selects it considering the useful life of asset. Summary of this is as follows:
| Useful life | Depreciation Coefficient |
| Less than 3 years | 1 |
| Greater than 3 but less than 5 years | 1.5 |
| Greater than 5 but less than 6 years | 2 |
| Greater than 6 years | 2.5 |
Examples of AMORDEGRC formula
Consider the following data:
To calculate the depreciation we will use following formula:
=AMORDEGRC(B1,B2,B3,B4,B5,B6,B7) which will give $89852 as a result.