Using Excel, years of service can be calculated with the **DATEDIF **function. Its purpose is to compute the differences between two sets of date, simply put, it subtracts dates in Excel. Thus, the **DATEDIF **function is what you’ll need if you want to calculate years of service (or excel date difference) using the **start date** and the **end date** (or current date).

Depending on your needs, this function can help you calculate the time between two dates such us: years between two dates, months between two dates, or even days between two dates.

**Note** that there are several ways and functions to get this work done. But here, I only present what works well, easy to understand, and of course save you some time.

**Here’s the situation:**

You’re an accountant in this organization where management wants to recognize some employees for their longevity with the organization. Now you’ve been asked to calculate the number of years served by each and every employee in the organization.

**Here’s what to do:**

**Step #1:** Insert the **start date** in one cell and the **end date** in an adjacent cell

In this example, the **start date** is in cell C3 and the **end date** is in cell D3.

Note: With the end date, you can type a specific date or use the current date. To insert today’s date into a cell, type **=TODAY() **and press enter. Excel will pick the date your computer is using at the moment.

Table of Contents

## Calculating years between the two dates

**Step #2: **Use this formula to calculate the years only

**=DATEDIF(C3,D3,”Y”)**

**Step #3:** Copy the **formula** to the rest of the cells using the **fill handle.**

Just double-click on the **fill handle** to complete this step.

**Calculating years plus months**

With what we’ve just done, we only get the year differences. What about if you want to calculate both the years and months each employee served in the organization?

**Here’s what to do:**

**Step #4: **Use this formula to calculate both the years and months

**=DATEDIF(C3,D3,”Y”) & ” years ” & DATEDIF(C3,D3,”YM”) & ” months”**

**Calculating years plus months, and days:**

Yet, another person may be interested in calculating the number of years, months and even days between two dates all in one cell.

**Here’s what to do: **

**Step #5:** Use this formula to calculate the **years**, **months**, and **days**

**=DATEDIF(C4,D4,”Y”) & ” years ” & DATEDIF(C4,D4,”YM”) & ” months ” & DATEDIF(C4,D4,”YM”) & ” days”**

**Calculating years and months in decimals:**

For benefiting employees, the HR doesn’t need the decimals since most benefits are only based on complete year service. But for payroll purposes, accountants would have to calculate employee’s years of service in decimals.

**Here’s what to do:**

#### Step #5: Use this formula to calculate years’ of service in decimals:

**=DATEDIF(C4,D4,”Y”)+DATEDIF(C4,D4,”YM”)/12**

If you have any further questions, just let me know in the comment session below.

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