Excel multi formula calculations not producing the correct result

[pepsi]

I have the following excel sheet and I am trying to do some basic calculations.

In row 13 - R&D, column F, I am trying to calculate

Sales * R&D as % of Sales

or

row 6 * row 14

176522.5 * 2.70%

the 2.70% in row 14, column F is an average of 3 other cells.

There are many formulas and cross-referencing going on. The problem is that 176522.5*0.027 = 4766.1075, yet the Excel calculation returns a value 4758.199018 which is wrong.

Why are my excel calculations wrong for this line? I think it has something to do with the fact that Excel is using the =AVERAGE(C14:E14) instead of the actual value of 2.70% in the calculation.

Does anybody know a work around for this issue?

[MarvinP]

Hi Pepsi,

Excel uses the exact value in a cell to do its calculations. In some cells you have the display format set to not show the full values of the numbers.

Example: In F14 the value is really 0.26955198 but it shows as 2.70% and you are thinking it is exactly this number. Look at how you have the displayed format of the cells vs what the cell's values really are.

I think this is your confusion.

[pepsi]

Ohhh thanks for that, I certainly see where my confusion came from. A basic error that I should have know.

Thanks for pointing that out for me!