# DAYS360 Formula

Kicking things off, the DAYS360 formula in Excel calculates the number of days between two dates based on a 360-day year.

## Purpose

The main reason to use the DAYS360 formula is to perform calculations in accounting and financial analysis where a year is considered to have 360 days.

## Syntax

The syntax of the DAYS360 formula is simple and goes like this:

`=DAYS360(start_date, end_date, [method])`

## Parameters

The DAYS360 formula takes in three parameters:

1. Start_date: The start date of the period.
2. End_date: The end date of the period.
3. Method (optional): A logical value that specifies whether to use the U.S. or European method.

## Returns

The DAYS360 formula will return the number of days between the start_date and the end_date based on a 360-day year.

## Usage notes

It’s important to know that the DAYS360 formula is handy when performing financial calculations, where a 360-day year is often used for simplicity.

## Availability

The DAYS360 formula is available in all versions of Excel.

## Example #1

Let’s say you want to calculate the number of days between January 1, 2023, and June 30, 2023, based on a 360-day year. You would use the DAYS360 formula like this:

`=DAYS360("2023-01-01", "2023-06-30")`

This formula will return the number of days between these dates based on a 360-day year.

## Example #2

Suppose you have two dates in cells A2 and B2 and want to calculate the number of days between them based on a 360-day year using the U.S. method. Here’s how to do it:

`=DAYS360(A2, B2, FALSE)`

This formula will return the number of days between these dates according to the U.S. method.

## Example #3

For our third example, let’s consider calculating the number of days between two dates using the European method:

`=DAYS360("2023-01-01", "2023-12-31", TRUE)`

This formula will return the number of days between these dates based on a 360-day year, using the European method.

## Example #4

In our fourth example, let’s calculate the number of days between today’s date and a specific future date:

`=DAYS360(TODAY(), "2023-12-31")`

This formula will return the number of days between today and December 31, 2023, based on a 360-day year.

## Example #5

For our final example, let’s see how the DAYS360 formula can be used to calculate the number of days between the same date in two different years:

`=DAYS360("2023-01-01", "2024-01-01")`

This formula will return the number of days between January 1, 2023, and January 1, 2024, based on a 360-day year.

## Tips and tricks

One tip when using the DAYS360 formula is to always specify the method parameter to avoid confusion and ensure accuracy in calculations.

## Limitations

A key limitation of the DAYS360 formula is that it assumes a 360-day year, which may not be accurate for all scenarios.

## Common errors and solutions

A common error when using the DAYS360 formula is supplying non-date values. This will return a #VALUE! error. Make sure that the input values are valid dates.

## Best Practices

A good practice when using the DAYS360 formula is to always validate the input dates. Also, consider whether a 360-day year is appropriate for your calculations.

## List of Related functions

The DAYS360 formula is one of many date and time functions in Excel. Other related functions include DATE, DATEVALUE, DAY, DAYS, and TODAY.

## Frequently Used with the formulas

The DAYS360 formula is often used with other formulas like DATE, TODAY, and EDATE to perform date calculations.

### Q. Can I use the DAYS360 formula to calculate the difference in months or years?

No, the DAYS360 formula only calculates the difference in days based on a 360-day year.

### Q. What happens if the end_date is earlier than the start_date?

The DAYS360 formula will return a negative number if the end_date is earlier than the start_date.

### Q. Does the DAYS360 formula include the start_date and end_date in the calculation?

Yes, both the start_date and end_date are included in the calculation.

Enhance your Excel proficiency by mastering the DAYS360 formula. It is an indispensable tool for financial calculations.