The `DAYS360` function in Excel calculates the number of days between two dates based on a 360-day year (assuming 30 days per month), which is commonly used in financial calculations. This method simplifies certain types of monthly and yearly reporting by standardizing the number of days per month. Here’s how to use the `DAYS360` function in Excel:
Syntax
DAYS360(start_date, end_date, [method])
Arguments
- start_date: This is the initial date of the period. You must enter the date using the DATE function or as a text string in the date format.
- end_date: This is the end date of the period. Like the start date, it must be entered using the DATE function or as a text string in the date format.
- [method]: This is an optional argument. If omitted or FALSE, the function uses the U.S. (NASD) method. If TRUE, it uses the European method.
Methods
- U.S. method (default, when method is FALSE or omitted): Adjusts months with 31 days to use 30. If the start date is the last day of a month, it sets it to the 30th of the same month.
- European method (when method is TRUE): Computes months with 31 days as if they had 30 days.
Example Usage
=DAYS360("01-Jan-2023", "31-Dec-2023")
This formula calculates the number of days between January 1, 2023, and December 31, 2023, using the U.S. method.
=DAYS360("01-Jan-2023", "31-Dec-2023", TRUE)
This formula calculates the same period using the European method.
Things to Note
- Ensure that date arguments are valid dates, formatted correctly, to avoid errors.
- If you’re performing financial calculations where months are standardized to 30 days, this function simplifies those calculations immensely.
By using the `DAYS360` function appropriately, you can perform date calculations based on a simplified, standardized calendar system commonly used in various accounting and financial scenarios.
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