YEARFRAC function: Description, Usage, Syntax, Examples and Explanation

What is DATEDIF function in Excel?

DATEDIF function is one of Date and Time functions in Microsoft Excel that calculates the fraction of the year represented by the number of whole days between two dates (the start_date and the end_date). For instance, you can use YEARFRAC to identify the proportion of a whole year’s benefits, or obligations to assign to a specific term.

Syntax of DATEDIF function

YEARFRAC(start_date, end_date, [basis])

The YEARFRAC function syntax has the following arguments:

  • Start_date    Required. A date that represents the start date.
  • End_date    Required. A date that represents the end date.
  • Basis    Optional. The type of day count basis to use.
Basis Day count basis
0 or omitted US (NASD) 30/360
1 Actual/actual
2 Actual/360
3 Actual/365
4 European 30/360
Also See:   Calculate years between dates in Excel

Important:

  • Dates should be entered by using the DATE function, or as results of other formulas or functions. For example, use DATE(2018,5,23) for the 23rd day of May, 2018. Problems can occur if dates are entered as text.
  • The YEARFRAC function may return an incorrect result when using the US (NASD) 30/360 basis, and the start_date is the last day in February.

DATEDIF formula explanation

  • Excel stores dates as sequential serial numbers so they can be used in calculations. By default, January 1, 1900 is serial number 1, and January 1, 2018 is serial number 43101 because it is 43,101 days after January 1, 1900.
  • All arguments are truncated to integers.
  • If start_date or end_date are not valid dates, YEARFRAC returns the #VALUE! error value.
  • If basis < 0 or if basis > 4, YEARFRAC returns the #NUM! error value.
Also See:   How to calculate percent of year complete in Excel

Example of DATEDIF function

Steps to follow:

1. Open a new Excel worksheet.

2. Copy data in the following table below and paste it in cell A1

Note: For formulas to show results, select them, press F2 key on your keyboard and then press Enter.

Also See:   Calculate retirement date in Excel

You can adjust the column widths to see all the data, if need be.

Data Description
1/1/2012 Start date
7/30/2012 End date
Formula Description Result
=YEARFRAC(A2,A3) Fraction of the year between 1/1/2012 and 7/30/12, omitting the Basis argument. 0.58055556
=YEARFRAC(A2,A3,1) Fraction between same dates, using the Actual/Actual basis argument. Because 2012 is a Leap year, it has a 366 day basis. 0.57650273
=YEARFRAC(A2,A3,3) Fraction between same dates, using the Actual/365 basis argument. Uses a 365 day basis. 0.57808219

Leave a Reply

Your email address will not be published. Required fields are marked *