Excel Nested IF Function Step by Step Tutorial

By Ted French, About.com Guide

Entering the Nested IF Function Value if True Argument

In the previous step the logical test for the nested IF function divided the remaining employees into two groups:

• employees with an annual salary of less than $50,000 (when the logical test is TRUE)
• employees with an annual salary of $50,000 or more (when the logical test is FALSE)

The Value_if_true argument for the nested IF function will calculate the annual deduction for the first group of employees. The second group's annual deduction will be calculated by the Value_if_false argument in the next step of the tutorial.

The deduction rate for this first group of employees is 8%. The amount of the deduction will be their annual salary multiplied by 8%.

As with our first Value_if_true argument in step 5, we need to use an absolute cell reference for the deduction rate when entering the formula to calculate the annual deduction.

The absolute cell reference will prevent errors from occurring when we copy the nested IF function to other cells in the last step of the tutorial.

Tutorial Steps

Following the nested IF function Logical_test " E7 < 50000, " entered in the previous step,

1. Click on cell E4 to enter that cell reference into the nested IF function Value_if_true argument.


2. Press the F4 key on the keyboard to make E4 an absolute cell reference ( $E$4 ).


3. Press the asterisk ( * ) key on the keyboard. The asterisk is the multiplication symbol in Excel.


4. Click on cell E7 to add this cell reference to the Value_if_true argument.


5. Note: We will not make E7 into an absolute cell reference because we want it to change when the function is copied.


6. Type a comma ( , ) after E7. The comma is used to separate the Value_if_true argument from the Value_if_false argument that will be entered in the next step of the tutorial.


7. At this point, the nested IF function on the Value_if_false line should read:
   if (E7 < 50000, $E$4*E7,