Simple Formula With two decimal Values showing values in far digits

This is a common problem, due to the fact that most decimal fractions cannot be represented in 64-bit binary floating-point exactly, which Excel uses internally. Also, the binary approximation of a particular decimal fraction might vary depending on the magnitude of the value. This often cause infinitesimal differences between the decimal and binary arithmetic results.

For example, IF(10.01 - 10 = 0.01, TRUE) returns FALSE(!). In this case, we can see the difference: 10.01 - 10 displays 0.00999999999999979 when formatted appropriately. But often, we cannot see the difference because Excel formats only the first 15 significant digits.

In general, when we expect a calculation to be accurate to some number of decimal places (2, in your case), explicitly round to that number of decimal places -- and not to an arbitrary number of decimal places like 10, as some people suggest.

In your example, the formula in A3 should be:

=ROUND(A2-A2, 2)

PS.... Some people might suggest setting the option "Precision as displayed" (PAD). I do not recommend it. First, it applies only to formulas, not expressions. So, for example, it would not remedy my example with IF(10.01 - 10...) above. Second, merely setting the option might change constants irreversibly anywhere in the workbook, if the constant is formatted to display less precision. For that reason, if you want to experiment with PAD, make a copy of the Excel file first, so that you can revert to the copy if and when you discover that PAD is not the best solution for you.

Apparently asked and answered in another forum (click here).