The DOLLAR function in Excel is an invaluable tool for financial analysts and accountants who require a standardized way to format numbers as currency. By converting a number into text in the dollar currency format, this function plays a crucial role in financial reporting and data presentation.

Syntax

DOLLAR(number, [decimals])

• number: The numeric value you want to convert to dollar format.
• decimals: (Optional) The number of digits to display to the right of the decimal point. If omitted, it defaults to 2.

Example #1

=DOLLAR(1234.567)

This converts the number 1234.567 to a text string in dollar format. Result: “$1,234.57”

Example #2

=DOLLAR(1234.567, 1)

This converts 1234.567 to dollar format with one decimal place. Result: “$1,234.6”

Example #3

=DOLLAR(1234.5, 0)

This converts 1234.5 to dollar format with zero decimal places. Result: “$1,235”

Error handling

• VALUE!: This error occurs if the ‘number’ argument is non-numeric, indicating that the input value cannot be converted.
• NUM!: This error appears when the ‘decimals’ argument is not an integer, indicating invalid input for the number of decimal places.

Conclusion

The DOLLAR function is a straightforward yet powerful tool that enhances the clarity of financial data presentations in Excel. By converting numerical figures into a standardized currency format, it ensures that financial reports are both professional and easy to read. Users can customize the display with the decimals parameter, making it versatile for different financial contexts.