ROUND Function
Purpose
Rounds a number to a specified number of digits. Uses standard arithmetic rounding: digits $0$ to $4$ round down, while digits $5$ to $9$ round up.
Syntax
EXCEL
=ROUND(number, num_digits)
Arguments Breakdown
| Argument | Required? | Description |
|---|---|---|
number |
Required | The number that you want to round. |
num_digits |
Required | The number of digits to which you want to round number. |
Precision Rules for num_digits:
- If
num_digits$> 0$,numberis rounded to the specified number of decimal places. - If
num_digits$= 0$,numberis rounded to the nearest integer. - If
num_digits$< 0$,numberis rounded to the left of the decimal point (tens, hundreds, etc.).
Practical Examples
1. Two-Decimal Financial Rounding Drill
From Formulas_&_Functions_Part_2.xlsx (Sheet Rounding and Dynamic Filters ):
If cell E2 contains 12.4445:
EXCEL
=ROUND(E2, 2)
Result: 12.44.
2. Large Scale Discretionary Rounding
Rounding sales to the nearest thousand:
EXCEL
=ROUND(158432, -3)
Result: 158000.
Cell Formatting vs ROUND() Function
Crucial Modeling Difference
Decreasing decimals via the Excel Home Ribbon only alters visual display—the underlying full precision number is retained and used in downstream calculations.
Using =ROUND() physically truncates the underlying mathematical value, preventing discrepancies in financial statements.
Related Knowledge
- Notes: 02 Statistical and Aggregation Functions
- Workbook:
11_Demos_and_Workbooks/03_Formulas_and_Functions/Formulas_&_Functions_Part_2.xlsx(Sheet:Rounding and Dynamic Filters)