What You'll Learn

  • The difference between a cell's value and its display format
  • How to apply number formats like Currency and Percentage
  • When to use Conditional Formatting instead of manual coloring

Formatting changes how data looks without changing what it is — a cell containing the number 1200 can display as 1200, $1,200.00, or 1,200% depending entirely on its number format, while the underlying value stays 1200.

Number Formats

Select a cell or range and use the Number Format dropdown on the Home tab to apply Currency, Percentage, Date, or other formats. This is different from typing a dollar sign yourself — applying Currency format keeps the cell a true number Excel can still calculate with, while typing "$1200" as text would not be.

Bold, Italic, Borders, and Fill Color

The Home tab's Font group covers the basics: B for bold, I for italic, plus buttons for borders and background fill color. Use these sparingly — a spreadsheet with every cell bolded and colored is harder to read than one with formatting reserved for headers and key totals.

Conditional Formatting

Conditional Formatting (on the Home tab) automatically changes a cell's appearance based on its value — for example, highlighting any cell under 50 in red. This updates automatically as the underlying data changes, unlike manually coloring cells yourself.

Common Mistakes

  • Typing a dollar sign or percent sign directly instead of applying a number format, which can turn a number into text
  • Over-formatting a sheet until it becomes harder to read, not easier

Practice Exercise

Enter five prices as plain numbers. Apply Currency format to them. Then apply Conditional Formatting to highlight any price over 100.

Ready to Test What You Learned?

Take a short quiz to check your understanding.

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Key Takeaways

  • Formatting changes appearance, not the underlying value
  • Apply Currency/Percentage formats rather than typing symbols manually
  • Conditional Formatting updates automatically as data changes