How to Use the DOLLARDE Function in Excel

Uncover the potential of the DOLLARDE function in Microsoft Excel—an essential tool for converting a fractional dollar price into a decimal dollar price. The DOLLARDE function within Excel enables you to accurately convert fractional dollar prices into decimal dollar prices. By harnessing this function, you can refine your understanding of price conversion and improve financial presentation. To effectively employ the DOLLARDE function, follow the comprehensive steps detailed below:

STEP 1. Open Excel: Launch Microsoft Excel on your computer.

STEP 2. Select a Cell: Choose the cell where you intend to display the converted dollar price.

STEP 3. Input the Formula:

Enter the following formula into the selected cell:

=DOLLARDE(fractional_dollar, [fraction])

Replace "fractional_dollar" with the fractional dollar price you want to convert and "[fraction]" with an optional parameter specifying the denominator of the fraction (default is 32).

STEP 4. Execute the Formula: After inputting the formula, press the Enter key to execute the DOLLARDE function. The cell will now display the converted decimal dollar price.

STEP 5. Illustrative Example: Suppose you have a fractional dollar price of 3 5/16, and you want to convert it to a decimal dollar price. Utilize this formula:

a. Break down "3 5/16" into its dollar and fraction parts:

- Dollar part = 3
- Fraction part = 5/16

b. Convert the fraction 5/16 to its equivalent fraction out of 100. This is done by multiplying the numerator (5) by 100 and dividing by the denominator (16). The result is ( \frac{5 \times 100}{16} ).

c. Now, you can use the DOLLARDE function:

=DOLLARDE(3, (5*100)/16)

d. Once you type the formula and press Enter, Excel will convert the fractional dollar number into its decimal representation.

STEP 6. Analyzing the Result: As the cell displays the converted decimal dollar price, you gain valuable insights into precise financial presentation.

Mastering the DOLLARDE function in Excel equips you with a valuable tool for accurate price conversion and financial reporting enhancement. By seamlessly integrating this function into your data analysis toolkit, you can refine your financial analysis proficiency and produce more informative financial statements. Feel free to reach out with questions or insights, fostering further exploration of this topic. The DOLLARDE function is available in various versions of Microsoft Excel, including Excel 2016, Excel 2019, and Microsoft 365.