Excel Function Video: How to use the round function in Excel
Introduction to the ROUND Function in Excel
The ROUND function is a tool used in Excel to round numbers to a specified number of digits.
This is particularly useful in business scenarios, like determining break even points, where partial units cannot be sold.
Break Even Information
Example is based on a company that sells one product.
Break even point calculated: 1,153.85 units, located in cell B9.
Since only full units can be sold, rounding is necessary to find whole units needed to break even.
Steps to Use the ROUND Function
Selecting the Cell
Navigate to cell B11 to display the rounded result.
Accessing the ROUND Function
Go to the Formulas menu ribbon.
Click on the Insert Function icon located on the far left of the ribbon.
Searching for the Function
In the Search for a Function field, type "ROUND" and press the Go button.
Highlight the ROUND function from the options and click OK.
Using the Function Arguments Wizard
In the Function Arguments Wizard that appears:
Number Field: Select cell B9 (this contains the unrounded break even units).
Num_digits Field: Specify the number of decimal places to round to. For whole units, type 0.
Click the OK button after entering the digits.
Displaying the Rounded Result
Cell B11 will now show 1,154, representing the number of units needed to break even when rounded to the nearest whole unit.
Rounding to Decimal Places
To round to one decimal place, enter 1 in the Num_digits field.
For two decimal places, enter 2.
Rounding Left of the Decimal Point
To round to the left of the decimal:
For tenths place (one decimal to the left), type -1 in the Num_digits field.
For hundredths place (two decimals to the left), enter -2.
After these adjustments, cell B11 should reflect changes appropriately (e.g., =ROUND(B9,0)).
Summary of Rounding Scenarios
Rounding to whole units is essential for practical business applications.
Adjustments can be made for rounding to decimal places or left of the decimal as needed.