DAX

Dax Function: AMORLINC

Category: Financial Functions

The AMORLINC function in Power BI (DAX) calculates the linear depreciation of an asset for each accounting period. Unlike AMORDEGRC, which adjusts depreciation based on asset life, AMORLINC applies a fixed depreciation rate for each period.

Purpose

Computes depreciation expenses using a fixed rate per period.
Helps businesses track asset depreciation in financial reports.
Used for tax calculations and financial planning.

Type of Calculations

Uses a straight-line depreciation method with a constant depreciation amount per period.
Computes depreciation over multiple periods, ensuring asset value does not go below salvage value.

Practical Use Cases

Asset Management: Tracking depreciation over an asset’s life.
Financial Reporting: Calculating asset value in balance sheets.
Tax Calculations: Determining deductible depreciation expenses.


AMORLINC(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 AMORLINC Dax Function Works

The AMORLINC function applies straight-line depreciation, meaning:

Depreciation remains the same for each period.
Formula for Depreciation:
The function ensures total depreciation does not exceed the asset cost minus 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 using fixed rates.
Business Owners: Tracking fixed-amount tax depreciation.
Investors: Understanding asset valuation in reports.

Examples

Basic Usage :


AMORLINC(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:

Cost
Purchase Date
First Period
Salvage Value
Depreciation Rate

We create a calculated column:


Depreciation = AMORLINC(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, AMORLINC(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 rates to ensure accurate results.
Set the right period—calculating depreciation for future periods may result in errors.
Combine with SUMX to 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 accelerated depreciation methods.

Performance Impact of AMORLINC DAX Function:

Efficient for row-level calculations.
May slow down with large datasets—optimize with calculated columns.

Related Functions You Might Need

AMORDEGRC – Similar to AMORLINC but adjusts depreciation based on asset life.
SLN (Straight-Line Depreciation) – Simplified straight-line depreciation.
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 AMORLINC You can also experiment with this function in your Power BI reports to explore its capabilities.

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1. What does the AMORLINC function do in Power BI?

The AMORLINC function calculates depreciation for an asset in each accounting period, applying a fixed depreciation rate per period.

2. How is AMORLINC different from AMORDEGRC?

AMORLINC applies constant depreciation per period.
AMORDEGRC adjusts depreciation based on asset life.

3. Can AMORLINC be used for tax calculations?

Yes! It’s commonly used for fixed-rate tax depreciation.

4. What happens if the salvage value is higher than the cost?

The function returns an error because depreciation cannot reduce asset value below salvage.

5. How do I sum depreciation across multiple assets?

Use SUMX in DAX:

Total Depreciation = SUMX(Assets, AMORLINC(Assets[Cost], Assets[Purchase Date], Assets[First Period], Assets[Salvage Value], 1, Assets[Depreciation Rate], 0))

Dax Function: AMORDEGRC

Dax Function: COUPDAYBS