The DAYS360 function in Excel is a financial tool designed to calculate the number of days between two dates, assuming a 360-day year. This can be particularly useful for various financial scenarios, such as calculating interest payments or bonds. It standardizes the length of months for the purpose of financial analysis, making it easier to compare time spans across different time frames.

Syntax

DAYS360(start_date, end_date, [method])

• start_date: The beginning date of your period.
• end_date: The ending date of your period.
• [method]: (Optional) A logical value that specifies the day count basis. If TRUE, the US (NASD) method is used; if FALSE, the European method is used.

Example #1

DAYS360("2023-01-01", "2023-12-31")

This function calculates the number of days between January 1, 2023, and December 31, 2023, yielding a result of 360 days.

Example #2

DAYS360("2022-02-28", "2023-03-01", TRUE)

This returns the number of days between February 28, 2022, and March 1, 2023, using the US method, resulting in 360 days.

Example #3

DAYS360("2022-01-30", "2022-02-28", FALSE)

Here, the function calculates days between January 30, 2022, and February 28, 2022, following the European method, yielding 28 days.

Error handling

• NUM! – This error occurs if either date is invalid or if the end date is earlier than the start date.
• VALUE! – This error arises when the start_date or end_date is not a valid date format.
• NAME? – This indicates that Excel doesn’t recognize the function name, typically due to a misspelling.

Conclusion

In summary, the DAYS360 function is a valuable tool for financial calculations, simplifying the process of determining days across a standardized year. By understanding its syntax and functionality, users can effectively leverage this function to streamline various financial analyses, ensuring clear and concise results without the complexities of varying month lengths.