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# Nested Functions

Nested Functions in Excel

Definition:

With nested functions one or more functions are placed inside a main function. More specifically, the nested functions are used as an argument for the main function.

As a result, nesting functions allows for multiple calculations to take place in a single cell - something that is not normally allowed in Excel.

In Excel 2003 you can have 7 levels of nested functions, while in Excel 2007 and 2010 you are allowed to nest up to 64 functions.

### The Order for Solving Nested Functions in Excel

When evaluating nested functions, Excel executes the deepest, or innermost function, first and then work its way outward.

### Nested Functions Example

The following example has the SUM function nested inside the ROUND function. The purpose of the nested function is to round the result of the SUM function to two decimal places.

### = ROUND(SUM (D1 : D3), 2)

In the example, Excel would first find the sum of the values in cells D1 to D3 and then round that figure to two decimal places.

Related Tutorial: Nested ROUND and SUM Function Tutorial

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