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Mastering Excel DATEDIF Function: Complete Guide to Date Difference Calculations

Function Overview

The DATEDIF function (Date Difference) is Excel's best-kept secret for date calculations. Originally from Lotus 1-2-3, this undocumented function has been available since Excel 2007. It calculates complete intervals between two dates in years, months, or days.

Syntax Structure

=DATEDIF(start_date, end_date, "unit")

Parameter Details

6 Unit Codes Explained

Unit CodeCalculationExample
"Y"Complete years2020-01-01 to 2023-12-31 → 3
"M"Complete months2023-01-15 to 2023-03-14 → 1
"D"Total days2023-01-01 to 2023-01-31 → 30
"MD"Days excluding months/years2023-01-15 to 2023-03-10 → 25
"YM"Months excluding years2022-11-30 to 2023-02-28 → 3
"YD"Days excluding years2024-02-28 to 2025-03-01 → 31

Practical Use Cases

Case 1: Employee Tenure Calculation

=DATEDIF(B2,TODAY(),"Y")&" years "&DATEDIF(B2,TODAY(),"YM")&" months"

Where B2 contains hire date: returns "3 years 5 months" format

Case 2: Project Timeline Tracking

=DATEDIF(start_date,end_date,"D")-NETWORKDAYS(start_date,end_date,holidays)

Calculates actual working days excluding weekends and holidays

Error Troubleshooting

Critical Considerations

  1. Leap Year Handling:
    2020-02-29 to 2021-02-28 → Returns 1 year with "Y" unit
  2. Month-End Quirk:
    =DATEDIF("2023-01-31","2023-03-01","MD") returns 1 day (not 0)
  3. Date Format Best Practice:
    Always use DATE function for unambiguous calculations

Real-World Application

A logistics company improved their invoice processing by 35% using DATEDIF to calculate payment terms:

When to Use Alternatives

While powerful, consider other methods for:

Pro Tips

Last verified: Excel 365 (August 2023 release)