Definition
DATEDIF is a function in Excel used to calculate the period or the difference between two dates in days, months, or years. The function requires three parameters: the start date, the end date, and the unit of time to output. The unit of time can be specified as days (“d”), months (“m”), years (“y”), etc.
Key Takeaways
- DATEDIF is a hidden but valuable function in Excel that is dedicated to calculating the difference between two dates in various units such as days, months, or years.
- Although DATEDIF isn’t documented in any official Microsoft Excel documentation, it’s a legitimate, commonly used function in Excel. It takes the structure =DATEDIF(start_date, end_date, “interval”) where “interval” could be days, months, or years.
- The results calculated through the DATEDIF function can be helpful in different financial scenarios such as calculating the tenure of a loan or the maturity period of an investment considering the start and end dates.
Importance
The DATEDIF function in Excel plays a crucial role in financial and date-time calculations, particularly when there is a need to determine precise periods.
This function calculates the difference between two dates in days, months or years, allowing users to accurately track payments, calculate depreciation, determine durations of specific financial operations, or analyze trends or patterns over time.
By providing an accurate measure of time elapsed between two dates, DATEDIF can support well-informed financial planning, decision making, and overall data analysis.
Without this function, users would have to manually calculate date differences, which could be time-consuming and prone to human error, especially for large datasets.
Explanation
The DATEDIF function in Excel is primarily used for calculating the precise difference between two dates. This function is extremely useful in fields like finance, human resources, project management and research, where the exact difference in periods is central to decision-making processes.
For example, a financial analyst might use DATEDIF to calculate the exact age of an investment; in human resources, it can be used to calculate the length of service of an employee in years, months or days. The purpose of the DATEDIF function goes beyond simple date subtraction.
The beauty of DATEDIF in Excel is its versatility in providing the span between two dates in multiple units such as days, months, or years. Also, DATEDIF can calculate the difference in terms of complete months or years that fall between two dates, making it extraordinarily useful for nuanced calculations where the entire span needs to be considered rather than the linear difference.
Thus, it is an essential tool in any financial modelling or cost estimation that hinges on time-based calculations.
Examples of DATEDIF in Excel
Employee Benefits Calculation: In many companies, the benefits employees receive are often directly related to their length of service. For example, vacation or leave allowance might accumulate based on how long an employee has worked. In such situations, HR departments could use the DATEDIF function in Excel to calculate the duration of an employee’s tenure in the company, by subtracting their start date from the present date.
Loan Interest Estimation: If you have taken out a loan, financial institutions will apply interest over a specific period of time. The DATEDIF function can be used to calculate the exact tenure of the term loan in days, months, or years between the loan disbursal date and the end of loan tenure. This allows the institution to accurately calculate accruals and interest to be charged.
Project Management: In project management, tasks are scheduled to start and end at specific times. The DATEDIF function can be used to calculate the project duration or time taken between the project commencement date and the expected completion date. From this, managers can analyze if there might be any delays or if tasks are completed ahead of schedule. This helps to better manage timelines and keep projects on track.
FAQ on DATEDIF in Excel
What is DATEDIF function in Excel?
DATEDIF is a hidden function in Excel, which calculates the difference between two dates in years, months, and days.
How to use the DATEDIF function in Excel?
You use the DATEDIF function by typing it in a cell and defining the start date, end date, and the unit of time you want the result displayed in. The general format is DATEDIF(start_date, end_date, unit).
Is DATEDIF function available in new versions of Excel?
Yes, the DATEDIF function is available in modern versions of Excel, including the latest Excel 2019 and Office365, but it’s not listed in Excel’s insert function window.
What are the units associated with DATEDIF in Excel?
The function contains three different units. “Y” gives the number of complete years between the start and end date, “YM” gives months excluding years, and “MD” gives the difference in days excluding years and months.
Why is DATEDIF function not appearing in function suggestions?
DATEDIF function doesn’t appear in the list of function suggestions because it’s classified as a compatibility function that’s kept available in modern Excel versions to ensure compatibility with older versions of Excel.
Related Entrepreneurship Terms
- Date Function: This Excel function returns the serial number of a particular date.
- TODAY Function: This function will return the current date in Excel.
- EOMONTH Function: This function returns the serial number of the last say of the month before or after a specified number of months.
- NOW Function: A date and time function that provides the current system date and time.
- YEARFRAC Function: This function calculates the fraction of the year represented by the number of whole days between two specific dates.
Sources for More Information
- Microsoft Support: Microsoft’s own support site is always a reliable source for any Excel-related queries, which includes DATEDIF.
- Exceljet: Exceljet offers a wide range of Excel tips and tricks, likely including detailed explanations on DATEDIF.
- ExtendOffice: ExtendOffice is a useful resource that covers a wide variety of Excel curious cases, including DATEDIF in Excel.
- Ablebits: Ablebits offers a collection of tips and tutorials of Excel so their information on DATEDIF is expected to be quite comprehensive and trustworthy.
