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Using the IF function to calculate sales tax
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Q: |
I'm creating a
spreadsheet in Microsoft Excel. I need to be able to have the
sheet calculate sales tax for orders, but only if the customer is
from NY state. Otherwise, I need the tax to calculate at zero. I
know that it can be done, but I have no idea how to do it. Can you
help? > Sy, Buffalo NY
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A: |
In order to have Excel
do this, you need to know how to use the IF function. Unlike
other functions, the IF function takes three pieces of data. First,
a conditional statement - something to test, like "is this customer
from NY." Second, you need to specify the value to use if the
condition is true, and finally the value to use if your condition is
false. Let's assume your customer's state field is in cell B5. Your
IF function would look something like this:
=IF(B5="NY", 0.08, 0)
This says, "if the customer is from
NY, his sales tax rate is 8%, otherwise, it's 0%." If this seems a
little confusing, don't worry. We cover this exact topic in our
Microsoft Excel 201 course. We'll teach you all about the IF
function and how it works.
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