How does the Excel IF command work?

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# How does the Excel IF command work?

The Excel IF Command is one of Excel’s most useful functions.

The IF function allows automated responses based on a condition. The IF function will test a cell against a condition or logical test, and place one of two answers based on whether the condition has been met or not.

Once the formula has been applied to the first cell, the formula can then be copied to other cells regarding the formula. This process will speed up the time you spend working on the task and increase your efficiency which allows you to work on additional tasks in the day.

The Excel IF Command can be used in many business environments such as sales or finance. In a financial example it can be used to indicate when a share price is above or below a certain value.

An example in a sales commission environment, the IF command could be used to calculate the commission payments based on sales figures. For example, if the sales figure is more than 40,000 then the commission is 5%, if not they only get 3%.

For example, to test out the IF command:
Type the following into a blank worksheet.

Cell A1 contains the word 'Susan'
Cell A2 contains 53,000
Cell B1 contains the word 'David'
Cell B2 contains 33,000

To then apply the IF statement, enter the following information into cell A3:

=IF(A2>40000,A2*5%,A2*3%)

Logical Test: A2>40000
True: A2*5% - If the sales figure is more than 40,000
False: A2 *3% - If the sales figure is less than 40,000

The answer A3 should be £2,650 and will update dynamically if the number in A2 changes.

To save time, simply copy and paste A3 to the other commission cells and the commission will be automatically calculated.

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