Nested IF() in Excel: A Quick Solution for Many Conditions

Combining Nested IF() with Other Excel Functions

Nested IF() functions are versatile on their own, but when you combine them with other Excel functions, they become even more helpful. Let me show you how with some examples.

IF() with VLOOKUP()

When you combine VLOOKUP() with IF(), you can conditionally retrieve and manipulate data based on specific criteria. For example, you have a price list that varies by region. If the region is North, you want to apply a 10% discount — otherwise, you’ll show the standard price. 

For this, use the following formula:

=IF(C2="North",VLOOKUP(B2,B2:D7,3,FALSE)*0.9,VLOOKUP(B2,B2:D7,3,FALSE))

In the above formula, the IF() function checks if the region in C2 is North. If it is, the price retrieved by VLOOKUP() is multiplied by 0.9 to apply the 10% discount. If it’s not, VLOOKUP() retrieves the standard price.

Combine IF() with VLOOKUP(). Image by Author.

IF() with SUMIF()

The SUMIF() function adds values based on certain criteria. If you combine it with IF(), you can analyze data even better by adding up numbers that meet specific conditions. For example, if I want to calculate the total sales for the North region, I’ll use the following formula:  

=IF(B2="North",(SUMIF(B2:C10,B2,C2:C10)),"")

In the above formula, the IF() function checks if the region in B2 is North. If TRUE, SUMIF() adds up all the values in column C that match North. If FALSE, it returns an empty string.

Combine IF() with SUMIF(). Image by Author.

Things I double-check when combining formulas

It was tricky when I started combining multiple functions. I’d write these complex formulas, only to have them break because of something simple. Here are a few lessons I’ve learned the hard way:

• Keep track of parentheses: This is where most of my mistakes happened. I’d miss a closing parenthesis and spend ages figuring out why my formula wasn’t working. Now, I always double-check that every opening parenthesis has a matching closing one. It saves me so much time.

• Handle errors: If you’ve ever had a formula return an ugly error because of one missing value, you know how frustrating it can be. I always use IFERROR() now to catch those issues and replace them with something more helpful, like a custom message.

• Use named ranges: Before I started naming my ranges, I’d lose track of which range I was referencing in long formulas. Then, I started giving them clear names so my formulas are easier to read and reduce the chance of messing up a reference.

Alternatives to Nested IF()

In order to be thorough, let’s look at some options. 

IFS() function

While Excel allows up to 64 nested IF() functions, let’s be real — stacking that many conditions creates error-prone formulas that no one wants to debug. If you’re using Excel 2016 or later, you can use the IFS() function. It’s a cleaner alternative for handling multiple conditions without nesting.

Here’s the syntax:

=IFS(logical_test1, value_if_true1, [logical_test2, value_if_true2])

Let me show you how it works. Suppose I have to calculate tax rates based on employee salaries so I’ll apply the following formula.

=IFS(C2<=30000, "10%", C2<=60000, "20%", C2<=100000, "30%", C2>100000, "40%")

If the salary in C2 is $30,000 or less, it returns 10%. If it’s between $30,001 and $60,000, it returns 20%. If it’s between $60,001 and $100,000, it returns 30%. Anything above $100,000 returns 40%.

Like the IF() function, the order of conditions matters. Excel stops evaluating as soon as it finds the first condition that’s TRUE. So, if none of your conditions are met, you’ll get an error. To avoid that, you can add a default condition at the end like this:

=IFS(C2<=30000, "10%", C2<=60000, "20%", C2<=100000, "30%", C2>100000, "40%", TRUE, "No Tax")

Now Excel will return No Tax if none of the salary conditions are met instead of throwing a #N/A error.

Using the IFS() function. Image by Author.

IF() combined with IF() using &

As an option, you can combine IF() with functions like & or CONCATENATE(). Here’s an example where I displayed the discount offer for each region:

=(IF(C2="North", 10%, "") & IF(C2="South",15%, "") & IF(C2="East", 5%, "") & IF(C2="West", 20%, ""))*1

In the above formula, each IF() statement checks the region and appends the discount percentage as text. The *1 at the end converts the result into a number. If you want text output, you can skip it.

Concatenate multiple IF() functions. Image by Author.

CHOOSE() or SWITCH() functions

If you’re looking foralternatives, CHOOSE() and SWITCH() are worth exploring. They are great for simple scenarios where you have to select from predefined options or match a single value to multiple outcomes. Check out DataCamp’s Data Analysis in Excel course which lets you practice a lot with a variety of functions.

Troubleshooting Tips for Nested IF()

I used to face a lot of errors when I began using nested IF() formulas. They felt impossible to solve. However, with time and mistakes, I learned lessons I wish I had known earlier. Here are some of them: 

• Data type confusion: Mixing numbers and text in comparisons can create unexpected results. If you’re comparing text, make sure it’s formatted as text. The same goes for numbers.

• Hitting the limit: Excel caps nested IF() at 64 levels. If your formula stops working, check if you’ve hit the limit. At that point, it’s usually time to rethink the approach or switch to a different function like IFS() or SWITCH().

If your formula isn’t behaving as expected, here’s what you can do:

1. Break it down: Don’t try to troubleshoot a huge formula all at once. Break it into smaller chunks and test each part. This will help you pinpoint exactly where things are going wrong.
2. Use Excel’s formula auditing tools: These tools are a lifesaver when debugging. Use Evaluate Formula to step through your formula piece by piece or Trace Precedents/Dependents to see how cells are connected.
3. Check your cell data format: Sometimes, it’s as simple as a formatting issue. For example, if a cell contains text but looks like a number, your formula may not work as expected. Double-check and adjust the formatting if needed.

A challenge question

Here’s a simple challenge to apply what you’ve learned. Say you’re calculating employee bonuses based on their performance and years of service. You want to give:

• A 10% bonus if performance is Excellent and years of service are over 5.
• A 5% bonus if performance is Good and years of service are over 3.
• No bonus otherwise.

Here’s how you could write the formula:

=IF(B2="Excellent", IF(C2>5, D2*10%, "No Bonus"), IF(B2="Good", IF(C2>3, D2*5%, "No Bonus"), "No Bonus"))

Try this out and see if you can adapt it to your scenarios.

Final Thoughts

When I started using nested IF() statements, I was amazed at how much time I saved and how many new possibilities opened up. If you’ve followed along, you would have noticed the same potential.

The key to mastering nested IF() really is practice. The more you experiment and apply these techniques in your own projects, the faster they become second nature. If you’re ready to take your skills even further, I highly recommend the Financial Modeling in Excel course or the Data Analysis with Excel Power Tools skills track on DataCamp. They will help you bridge the gap between knowing formulas and using Excel as a real business tool. 

Excel has so much to offer, and nested IF() is one part of it. Once you start using these formulas creatively, you’ll see how helpful Excel can be.