Basis : Defines the calendar system to be used in the function.
0 : or omitted USA style 30 days per month divided by 360.
1 : 29 or 30 or 31 days per month divided by 365.
2 : 29 or 30 or 31 days per month divided by 360.
3 : 29 or 30 0r 31 days per month divided by 365.
4 : European 29 or 30 or 31 days divided by 360.
The following table was used by a company which hired people on short term contracts for a part of the year. The Pro Rata Salary which represents the annual salary is entered. The Start and End dates of the contract are entered. The =YEARFRAC() function is used to calculate Actual Salary for the portion of the year.
|Start||End||Pro Rata Salary||Actual Salary|
|1-Jan-98||31-Dec-98||£12,000||£12,000||=YEARFRAC (B32,C32+1,4) *D32|
|1-Jan-98||31-Mar-98||£12,000||£3,000||=YEARFRAC (B33,C33+1,4) *D33|
|1-Jan-98||30-Jun-98||£12,000||£6,000||=YEARFRAC (B34,C34+1,4) *D34|
The extra 1 has been added to the End date to compensate for the fact that the =YEARFRAC() function calculates from the Start date up to, but not including, the End date.