Dax Function: AMORDEGRC
Category: Financial Functions
The AMORDEGRC function in Power BI (DAX) calculates the depreciation of an asset for each accounting period, considering a depreciation coefficient that changes based on the asset’s lifespan.
Purpose
Computes depreciation expenses in accordance with accounting rules.
Helps businesses track asset value reduction over time.
Adjusts depreciation rates dynamically, making it more flexible than straight-line methods.
Type of Calculations
Uses a declining balance method with an adjusted coefficient based on the asset’s lifespan.
Calculates the depreciation value for each accounting period.
Useful in financial planning, tax calculations, and asset management.
Practical Use Cases
Asset Management: Tracking depreciation of company assets over multiple periods.
Financial Reporting: Calculating tax depreciation based on asset life.
Investment Analysis: Estimating asset valuation for financial planning.
AMORDEGRC(cost, date_purchased, first_period, salvage, period, rate, basis)
| Parameter | Type | Description |
|---|---|---|
| cost | Decimal | The initial purchase price of the asset. |
| date_purchased | Date | The acquisition date of the asset. |
| first_period | Date | The first accounting period for depreciation calculation. |
| salvage | Decimal | The asset’s salvage value (residual value at the end of its life). |
| period | Integer | The period for which depreciation is being calculated. |
| rate | Decimal | The depreciation rate applied to the asset. |
| basis | Integer | The day count basis used (default is 0). Options: 0 = US (NASD) 30/360 1 = Actual/Actual 2 = Actual/360 3 = Actual/365 4 = European 30/360 |
How Does AMORDEGRC Dax Function Works
The AMORDEGRC function applies declining balance depreciation with a coefficient that depends on the asset’s useful life:
Depreciation Coefficient Adjustments
If asset life < 3 years, coefficient = 1.5
If 3 ≤ asset life < 5 years, coefficient = 2
If 5 ≤ asset life < 6 years, coefficient = 2.5
If 6 ≤ asset life < 8 years, coefficient = 3
If 8+ years, coefficient = 3.5
Formula for Depreciation
Depreciation is capped so the asset does not depreciate below salvage value.
What Does It Return?
The function returns a decimal value representing the depreciation expense for the specified period.
When Should We Use It?
Financial Analysts: Estimating asset depreciation under various accounting standards.
Business Owners: Tracking tax depreciation for capital assets.
Investors: Understanding asset value reduction in financial statements.
Examples
Basic Usage :
AMORDEGRC(10000, DATE(2022,1,1), DATE(2022,12,31), 500, 1, 0.2, 0)
Result: Calculates depreciation for first period of a $10,000 asset with a 20% rate and $500 salvage value.
Column Usage:
If we have a table Assets with:
CostPurchase DateFirst PeriodSalvage ValueDepreciation Rate
We create a calculated column:
Depreciation = AMORDEGRC(Assets[Cost], Assets[Purchase Date], Assets[First Period], Assets[Salvage Value], 1, Assets[Depreciation Rate], 0)
Computes depreciation dynamically for each asset in the table.
Advanced Usage – Total Depreciation for Multiple Assets
Total Depreciation = SUMX(Assets, AMORDEGRC(Assets[Cost], Assets[Purchase Date], Assets[First Period], Assets[Salvage Value], 1, Assets[Depreciation Rate], 0))
Aggregates total depreciation across multiple assets.
Tips and Tricks
- Use correct depreciation coefficients to ensure accurate results.
- Set the right period—calculating depreciation for future periods may result in errors.
- Combine with
SUMXto calculate total depreciation across multiple assets.
Potential Pitfalls
- Incorrect salvage value can lead to negative depreciation.
- Rate miscalculation might cause over-depreciation.
- Function assumes fixed depreciation periods—not suitable for variable depreciation schedules.
Performance Impact of AMORDEGRC DAX Function:
Efficient for row-level calculations.
May slow down with large datasets—optimize with calculated columns.
Related Functions You Might Need
AMORLINC – Similar to AMORDEGRC but without coefficient adjustments.
SLN (Straight-Line Depreciation) – Spreads depreciation evenly over the asset’s life.
DB (Declining Balance) – Computes depreciation using a constant percentage.
DDB (Double Declining Balance) – Accelerated depreciation method.
Want to Learn More?
For more information, check out the official Microsoft documentation for AMORDEGRC You can also experiment with this function in your Power BI reports to explore its capabilities.
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The AMORDEGRC function calculates depreciation for an asset in each accounting period, applying an adjusted coefficient based on asset life.
AMORDEGRC uses a depreciation coefficient that adjusts based on asset life.
AMORLINC applies a fixed declining balance depreciation without adjustments.
Yes! It’s commonly used for tax depreciation, aligning with accounting standards.
The function returns an error because depreciation cannot reduce asset value below salvage.
Use SUMX in DAX:
Total Depreciation = SUMX(Assets, AMORDEGRC(Assets[Cost], Assets[Purchase Date], Assets[First Period], Assets[Salvage Value], 1, Assets[Depreciation Rate], 0))