Sometimes you may need to **Calculate Dearness Allowance (DA) on Basic Salary in Excel**. In this article, I’m going to explain to you three methods of how to calculate **DA on Basic Salary in Excel**.

**Table of Contents**hide

## Download Practice Workbook

You can download the practice workbook from here:

## What Is Dearness Allowance (DA)?

**Dearness Allowance** is paid to the employee by the authority for balancing the impact of inflation. Basically, **Dearness Allowance** is a percentage of the basic salary. Which will be included in your salary to cope with the present situation of the monetary value of your country’s currency.

In addition, **Dearness Allowance(DA)** depends on the terms & conditions of individual companies, sectors, and countries.

## 3 Methods to Calculate DA on Basic Salary in Excel

For your better understanding, I’m going to use an example of the following dataset. Which contains four columns. These are **Name**, **Salary**, **Total Days**, and **Worked Days**. Now, I will describe to you about the methods to **Calculate DA on Basic Salary in Excel**. The methods are given below:

### 1. Using IF Function to Calculate DA on Basic Salary

You can use **the IF function** to calculate **DA** in Excel. For this method, I’m going to use the following dataset. Which contains two columns. Those are **Name** and **Salary**.

**Steps:**

- Firstly, select a different cell
**D5**where you want to**calculate**the**DA percentage**. - Secondly, use the corresponding formula in the
**D5**cell.

`=IF(C5>=7000,"8%","7%")`

Here, in the **IF **function, I used a **logical_test** where I want to check the values **greater than or equal** to **$7000** to return the **DA **percentage from the **Salary **range. If the salary is greater than or equal to $7000 then it will return the **DA **percentage as **8%** otherwise it will return** 7%**.

- Then, press
**ENTER**to get the value in the**DA Percentage**column.

At this time, you will get the **DA** value in percentage form.

- Subsequently, you have to drag the
**Fill Handle**icon to**AutoFill**the corresponding data in the rest of the cells**D5:D9**.

After that, you can see the following result.

Now, I’m going to find the final **DA Amount**.

- For this firstly, select the cell
**E5**where you want to show the**DA Amount**. - Secondly, use the corresponding formula in the
**E5.**

`=C5*D5`

Here, in this formula, I have multiplied the **Salary** range by the **DA Percentage** to get the final **DA Amount**.

- Now, press
**ENTER**to get the**DA Amount**. - Similarly, you have to drag the
**Fill Handle**icon to**AutoFill**the corresponding data in the rest of the cells**E5:E9**.

**Read More: How to calculate salary increase percentage in Excel [Free Template]**

### 2. Applying IF and Round Functions to Calculate DA on Basic Salary

You can apply **IF** and **ROUND** functions to** calculate DA** on basic salary. Suppose, you have the following dataset. Which has four columns. These are **Name, Salary, Total Days, **and **Worked Days**.

**Steps:**

- Firstly, select a different cell
**F5**where you want to**calculate**the**DA Amount**. - Secondly, use the corresponding formula in the
**F5**cell.

`=IF(E5=0,"",ROUND(C5/D5*E5*7%,-1))`

**Formula Explanation**

**E5=0**: this is the condition of the**IF**Function.**“”**: When the**IF**condition satisfies, it will return a blank cell.**ROUND(C5/D5*E5*7%,-1) :**When the**IF**function does not satisfy it will**round**the**DA**value of to the decimal figure.**IF(E5=0,””,ROUND(C5/D5*E5*7%,-1))**: It will check the**Worked Days**values**equal**or**not equal**to**0**to return the**DA**amount. If the worked days equal to 0 then it will return the**DA**amount as a**space**otherwise it will return**the DA**amount

- Now, press
**ENTER**to get the value of**DA Amount**.

Finally, you can see the **DA Amount**.

- For other data, you have to drag the
**Fill Handle**icon to**AutoFill**the corresponding data in the rest of the cells**F5:F9**.

Finally, you will get all the **DA Amount**.

**Read More: How to Calculate HRA on Basic Salary in Excel (3 Quick Methods)**

### 3. Using Generic Formula to Calculate DA on Basic Salary

You can use **generic formula** as well to calculate** DA **on basic salary. For this method, let you have the following dataset.

**Steps:**

- At first, select a different cell
**D5**where you want to**calculate DA.** - Then, use the corresponding formula in the
**D5**cell.

`=(C5*12)/100`

Here, in this formula, I have multiplied **Salary** by** 12** and then divided it by **100**.

- Then, press
**ENTER**to get the value of**Dearness Allowance**. - Finally, follow the
**Fill Handle**procedure and you will get the calculated**Dearness Allowance.**

## Things to Remember

- For your own company, firstly you must know the terms and conditions of
**Dearness Allowance (DA)**. According to that policies you have to edit the values used in this workbook.

## Practice Section

You can download the free workbook and there you will find a practice section.

## Conclusion

I hope you found this article helpful. Here, I have explained **3 methods** of how to **calculate Dearness Allowance (DA) on basic salary** in Excel. You can visit our website **ExcelDemy** to learn more Excel-related content. Please, drop comments, suggestions, or queries if you have any in the comment section below.