Prevent the inconvenience of calculating time based on a 360-day year by using Microsoft Excel's "Days360" function to handle the task. Accountants, bookkeepers and other financial professionals using accounting systems based on twelve 30-day months use a 360-day year to calculate time. Enter into the function a start date, an end date and a method. There are two methods, TRUE (European method) and FALSE (US (NASD) method). These two methods exist because of differences in accounting practices between the United States and Europe.
Open Microsoft Excel and click in the cell where you want to enter the formula to calculate a 360-day year.
Enter the start and end dates in the "DAYS360" function formula.
=DAYS360(start date, end date, method)
Use the DATE function or cell references to enter dates directly into the formula.
Example of the DAYS360 function using the DATE function:
Example of the DAYS360 function using cell references assuming the start date is in cell A2 and the end date is in cell B2:
=DAYS360(A2, B2, FALSE)
Enter the method in the "DAYS360" function formula. Enter "FALSE" for the US method. Enter "TRUE" for the European method.
Using the European method (TRUE), Excel calculates the 31st day of the month as the 30th day of the month for both start and end dates.
Using the US method (FALSE), Excel calculates the last day of the month as the 30th if it is a starting date. If the ending date is the last day of the month, and the starting date is earlier than the 30th of the month, the ending date becomes equal to the first day of the next month.
Example: =DAYS360(DATE(2011,1,1), DATE(2011,6,2), FALSE)
This example of the DAYS360 function, using a 360-day year calculates the number of days between January 1, 2011 and June 2, 2011 using the US method. The result is 151 days.
Press the "Enter" key after entering the complete formula.
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