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ROUND Function

Rounds up a number to a specified number of digits

What is the ROUND Function?

The ROUND Function is categorized under Math and Trigonometry functions. The function will round up a number to a specified number of digits. Unlike the ROUNDUP and ROUNDDOWN functions, the ROUND function can round either to the left or to the right of the decimal point.

As a financial analyst, the ROUND function is useful as it helps round a number and eliminate the least significant digits, simplifying the notation but keeping close to the original value.

 

Formula

=ROUND(number,num_digits)

 

The ROUND function uses the following arguments:

  1. Number (required argument) – It is a real number that we wish to round.
  2. Num_digits (required argument) – It is the number of digits to which we want to round the number.

 

Now if the num_digits argument is:

  1. A positive value that is greater than zero, it specifies the number of digits to the right of the decimal point.
  2. Equal to zero, it specifies rounding to the nearest integer.
  3. A negative value that is less than zero, it specifies the number of digits to the left of the decimal point.

 

How to use the ROUND Function in Excel?

To understand the uses of the ROUND function, let’s consider a few examples:

 

Example 1

Suppose we are given the following data:

 

NumberDigitsRemarks
5.1420Round up to the nearest whole number
5.1421Round up to 1 decimal place
5.1422Round up to 2 decimal places
2785.23Round up to 3 decimal places
2785.2-1Round up to the nearest 10
2785.2-2Round up to the nearest 100
2785.2-3Round up to the nearest 1000

 

The results we get in Excel are shown below:

 

ROUND Function

 

Example 2

Let’s see how to round prices using the function to the nearest 0.99 value. Suppose we are given the following data:

 

ROUND Function - Example 2

 

The formula used is shown below:

 

ROUND Function - Example 2a

 

The ROUND function would first round 63.39 to 63 and then subtract 0.01 to give 62.99. So, the function with a zero would round the number given to the nearest whole dollar. Once it is rounded, the formula would simply subtract 0.01 from the number to get a .99 value.

 

We get the result below:

 

ROUND Function - Example 2b

 

Click here to download the sample Excel file

 

Additional resources

Thanks for reading CFI’s guide to important Excel functions! By taking the time to learn and master these functions, you’ll significantly speed up your financial analysis. To learn more, check out these additional resources:

  • Excel Functions for Finance
  • Advanced Excel Formulas Course
  • Advanced Excel Formulas You Must Know
  • Excel Shortcuts for PC and Mac

Free Excel Tutorial

To master the art of Excel, check out CFI’s FREE Excel Crash Course, which teaches you how to become an Excel power user.  Learn the most important formulas, functions, and shortcuts to become confident in your financial analysis.

 

Launch CFI’s Free Excel Course now to take your career to the next level and move up the ladder!