IF Function: Introduction

What does it do?

It returns a value that you set if a condition is met, and a value if it is not met

Formula breakdown:

=IF(Logical Test,Value if True,Value if False)

What it means:

=IF(The condition to be checked, Value to be shown if the condition is met, Value to be shown if condition is not met)

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The IF function is probably one of the most used Excel functions because it is easy to understand and very flexible when you apply it to real life situations.

Here I will show you a couple of ways that you can use the IF function to get you up and going.

We want to show a Bonus value if sales are bigger than $3000, and No Bonus is shown if this condition is not met. Afterwards let’s try computing the 10% bonus!

STEP 1: We need to enter the IF function in a blank cell:
=IF(

 

STEP 2: The IF arguments:

Logical_test

What is your condition?

Sales Rep has sold more than 3000 dollars.
=IF(D15>3000,

Value_if_true

What value should be displayed if the condition is true?

We want “Bonus” to be displayed
=IF(D15>3000, "Bonus",

Value_if_false

What value should be displayed if the condition is false?

We want “No Bonus” to be displayed
=IF(D15>3000, "Bonus", "No Bonus")

Apply the same formula to the rest of the cells by dragging the lower right corner downwards.

STEP 3: Let us now aim to give the 10% Bonus!

The IF arguments:

Logical_test

What is your condition?

Sales Rep has sold more than 3000 dollars.
=IF(D15>3000,

 

Value_if_true

What value should be displayed if the condition is true?

We want give a 10% bonus based on sales
=IF(D15>3000, D15*10%,

Value_if_false

What value should be displayed if the condition is false?

Then no bonus amount should be given, type in 0
=IF(D15>3000, D15*10%, 0)

Apply the same formula to the rest of the cells by dragging the lower right corner downwards.

You now have all of results!