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IF Function

Tests a given status and returns ane value for a TRUE result, and another for a Imitation result

What is an Excel IF Argument?

The Excel IF Statement tests a given condition and returns one value for a TRUE issue and some other value for a Simulated result. For instance, if sales full more than $5,000, and so return a "Yes" for Bonus – Otherwise, return a "No" for Bonus. Nosotros tin can as well apply the IF office to evaluate a single role, or we can include several IF functions in one formula. Multiple IF statements in Excel are known as nested IF statements.

Excel IF Statement Definition

As a financial analyst, the IF function is used frequently to evaluate and analyze information by evaluating specific conditions.

The function can be used to evaluate text, values, and even errors. It is not limited to merely checking if one thing is equal to another and returning a single result. We tin can as well utilize mathematical operators and perform boosted calculations, depending on our criteria. We can likewise nest multiple IF functions together to perform multiple comparisons.

IF Formula

=IF(logical_test, value_if_true, value_if_false)

The function uses the post-obit arguments:

Logical_exam (required argument) – This is the condition to be tested and evaluated as either True or FALSE.
Value_if_true (optional statement) – The value that will be returned if the logical_test evaluates to True.
Value_if_false (optional statement) – The value that will be returned if the logical_test evaluates to FALSE.

When using the IF office to construct a test, we can use the post-obit logical operators:

= (equal to)
> (greater than)
>= (greater than or equal to)
< (less than)
<= (less than or equal to)
<> (not equal to)

How to use the Excel IF Function

To sympathise the uses of the Excel IF statement function, allow'southward consider a few examples:

Instance one – Simple Excel IF Statement

Suppose we wish to exercise a very unproblematic examination. We want to test if the value in prison cell C2 is greater than or equal to the value in cell D2. If the statement is true, and then we want to return some text stating "Yes it is", and if it's not truthful, and then nosotros want to display "No it isn't".

Yous can come across exactly how the Excel IF statement works in the simple instance beneath.

Event when true:

Issue when false:

Download the simple XLS template.

Case 2 – Excel IF Statement

Suppose we wish to examination a jail cell and ensure that an activeness is taken if the jail cell is not bare. We are given the data below:

IF Function

In the worksheet above, we listed AGM-related tasks in Column A. Remarks contain the date of completion. In Column B, we will use a formula to check if the cells in Cavalcade C are empty or not. If a cell is bare, the formula will assign the status "open." Nonetheless, if a prison cell contains a engagement, then the formula volition assign a status of "closed." The formula used is:

IF Function - Example 2

We get the results beneath:

IF Function - Example 2a

Example 3 – Excel IF Statement

Sellers frequently provide a discount based on the quantity purchased. Suppose nosotros are given the following data:

IF Function - Example 3

Using multiple IF functions, nosotros can create a formula to check multiple weather condition and perform different calculations depending on what amount range the specified quantity falls in. To calculate the full price for 100 items, the formula will be:

IF Function - Example 3a

We get the effect below:

IF Function - Example 3b

Things to remember about the IF Function

The Excel IF function will work if the logical_test returns a numeric value. In such a case, any not-nix value is treated every bit True and zero is treated as FALSE.
#VALUE! error – Occurs when the given logical_test statement cannot be evaluated as Truthful or FALSE.
When any of the arguments are provided to the office as arrays, the IF function will evaluate every chemical element of the array.
If we wish to count conditions, we should use the COUNTIF and COUNTIFS functions.
If we wish to add up conditions, we should use the SUMIF and SUMIFS functions.

Reasons to use an Excel IF Statement

There are many reasons why an analyst or anyone who uses Excel would desire to build IF formulas.

Common examples include:

To test if an argument is true or false
To output a NUMBER
To output some TEXT
To generate a conditional formula (e.g., the result is C3+B4 if true and N9-E5 if faux)
To create scenarios to be used in financial modeling
To calculate a debt schedule or a fixed nugget depreciation schedule in accounting

Click here to download the sample Excel file

Additional resources

Thanks for reading CFI'due south guide on how to use an Excel IF Statement. Past taking the time to acquire and master these functions, you'll significantly speed up your financial analysis. To learn more, cheque out these additional CFI resources:

Free Excel Fundamentals Course
Advanced Excel Class
Advanced Excel Formulas Guide
Excel Shortcuts Listing
Financial Modeling Program