If you want to create a nested formula in Excel, you have come to the right place. Here, we will walk you through 3 easy examples to do the task smoothly.

**Table of Contents**Expand

## What Is a Nested Formula?

When a function stays inside another function and acts as one of the arguments; then it is called a nested formula. Nested formulas are useful to avoid step-by-step calculations, and it is helpful to make calculations in one step rather than making a number of calculations to get to our expected answer.

## How to Create a Nested Formula in Excel: 3 Easy Examples

In the following dataset, you can see the Name and Score columns. Using this dataset, we will go through 3 easy examples to create a nested formula in Excel. Here, we used Microsoft Excel 365. You can use any available Excel version.

### 1. Using IF Function to Create Nested Formula in Excel

In this method, we will use **the IF function** as an argument inside an **IF** function to create a nested formula in Excel. After that, using the nested formula, we will find out the Grade of the following dataset.

**Steps:**

- First, we will type the following formula in cell
**D5**.

`=IF(C5>80,"A+",IF(C5>70,"A",IF(C5>60,"C")))`

**Formula Breakdown**

**IF(C5>80,”A+”,IF(C5>70,”A”,IF(C5>60,”C”)))**→ The**IF**function makes a logical comparison between a given value and the value we expect. Here, I used nested**IF****IF(C5>60,”C”)**→ returns “C” when**C5**>60.**IF(C5>70,”A”)**→ returns “A” when**C5**>70.**IF(C5>80,”A+”)**→ returns “A+” when**C5**>80.**IF(C5>80,”A+”,IF(C5>70,”A”,IF(C5>60,”C”)))**→ becomes**Output:**C

**Explanation:**Since the condition**C5**>60 is true, the**IF**function returns “C”.

- After that, press
**ENTER**.

Then, you can see the result in cell **D5**.

- Furthermore, we will frag down the formula with the
**Fill Handle**Tool.

As a result, you can see the complete **Grade **column.

**Read More: **How to Use Nested IF Function in Excel

### 2. Use of IF, AVERAGE, and MAX Functions

In the following dataset, we can see the Name, Sales in 2020, Sales in 2021, and Deserve Bonus. columns. Next, using the **IF**, **AVERAGE**, and **MAX** functions, we will create a nested formula to find out whether the person in the Name column deserves a bonus or not.

**Steps:**

- In the beginning, we will type the following formula in cell
**E5**.

`=IF(AVERAGE(C5:D5)>=(AVERAGE(MAX($C$5:$C$11),MAX($D$5:$D$11))*0.75),"Yes","No")`

**Formula Breakdown**

**MAX($C$5:$C$11)**→ The**MAX**function returns the maximum value in a range of cells.**Output:**$150,000

**MAX($D$5:$D$11)) →**becomes**Output:**$180,000

**AVERAGE(MAX($C$5:$C$11),MAX($D$5:$D$11) →**The**AVERAGE**function returns the average of the values of cells.**AVERAGE**(**$150,000,$180,000)**→ becomes**Output:**$165,000

**AVERAGE(MAX($C$5:$C$11),MAX($D$5:$D$11))*0.75 →**multiplies $165,000 by 75.**Output:**$123750

**AVERAGE(C5:D5)**→ becomes**Output:**$130,000

**IF(AVERAGE(C5:D5)>=(AVERAGE(MAX($C$5:$C$11),MAX($D$5:$D$11))*0.75),”Yes”,”No”)**→ The**IF**function makes a logical comparison between a given value and the value we expect.**IF**(**$130,000>= $165,000,”Yes”,”No”)**→ becomes**Output:**Yes

**Explanation:**Since the logical argument of the**IF**function is true, it returns “Yes”.

- Afterward, press
**ENTER**.

Therefore, you can see the result in cell **E5**.

- Moreover, we will frag down the formula with the
**Fill Handle**Tool.

Hence, you can see the complete Deserve Bonus? column.

**Read More:** How to Use Nested IF and SUM Formula in Excel

### 3. Applying IF and AND Functions to Create Nested Formula in Excel

In this method, we will apply the **IF** and **AND** functions to create a nested formula in Excel. After that, using the formula we will find out the Ratings in the following dataset.

**Steps:**

First of all, we will type the following formula in cell **D5**.

`=IF(AND(C5="A+"),"Excellent",IF(AND(C5="A"),"Good","Poor"))`

**Formula Breakdown**

**AND(C5=”A”),”Good”,”Poor”) →**The**AND**function determines whether all conditions in a logical statement are true or not.**IF(AND(C5=”A+”),”Excellent”,IF(AND(C5=”A”),”Good”,”Poor”))****→**the**IF**function makes a logical comparison between a given value and the value we expect.**Output:**Excellent

**Explanation:**Since**C5**=A+, the formula returns “Excellent”.

- At this point, press
**ENTER.**

Therefore, you can see the result in cell **D5**.

- In addition, we will drag down the formula with the
**Fill Handle**tool.

Hence, you can see the complete Ratings column.

**Read More: **Nested Formula with AVERAGE and ROUND Functions in Excel

## Practice Section

You can download the above Excel file to practice the explained method.

**Download Practice Workbook**

You can download the Excel file and practice while you are reading this article.

## Conclusion

Here, we tried to show you 3 examples to create a nested formula in Excel. Thank you for reading this article, we hope this was helpful. If you have any queries or suggestions, please let us know in the comment section below.

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IF( R5=”1″”F5″,IF(R5=”2″,L5″R5=”3″”M5″)))

HI THERE IM TRYING TO NEST THE ABOVE FORMULA IN A SPREADSHEET BUT STILL CANT GET IT TO WORK.

CAN YOU HELP PLEASE

ROBERT

Hello

ROBERT MCPHEEThanks for reaching out and posting your query. You wanted to create a nested formula using

the IF function. You were almost there. The formula you have given contains somesyntax errors.Corrected Formula:If you want to use the formula from another sheet, for example, from

any sheetand use theR5,F5,L5, andM5cells ofSheet1, use the following formula.Hopefully, this idea will help you reach your goal. Good luck!

Regards

Lutfor Rahman Shimanto