Excel DOLLAR Function: Format a Number as Currency Text
Converts a number into text formatted as currency.
DOLLAR takes a number and returns it as text with a currency symbol, thousands separators and a fixed number of decimals. =DOLLAR(1240.5, 2) gives "$1,240.50" — and the quotes matter, because the result really is text.
That is the whole thing to understand about it. Formatting a cell as currency leaves a number underneath that you can still add up; DOLLAR produces text that you cannot. Using it on a column and then summing that column gives zero, exactly as with any other text number.
So it is for building sentences, not for presenting figures. Joining an amount into a message — "Your balance is " & DOLLAR(B2) — is what it is for. For a column of figures that should look like money and still behave like numbers, use cell formatting instead. TEXT does the same job as DOLLAR with a format string you control, which makes it the more useful of the two.
Syntax
=DOLLAR(number, [decimals])Arguments
numberRequired- The value to format.
decimalsOptional- How many decimal places. Defaults to 2. Negative values round to the left of the decimal point, as in ROUND.
The example data
Headers in row 1, data in A2:C5. Column B arrived as text, not numbers.
| A | B | C | |
|---|---|---|---|
| 1 | Reference | Amount (text) | Score |
| 2 | INV-1041 | 1240.50 | 4 |
| 3 | INV-1042 | 385.00 | 2 |
| 4 | INV-1043 | 2100.75 | 5 |
| 5 | INV-1044 | 940.20 | 3 |
Worked examples
=DOLLAR(VALUE(B2), 2)Result: $1,240.50
The text amount converted to a number, then formatted as currency text. Note the result is text again.
=DOLLAR(VALUE(B4), 0)Result: $2,101
Zero decimals rounds to whole units rather than truncating.
="Invoice " & A2 & " for " & DOLLAR(VALUE(B2))Result: Invoice INV-1041 for $1,240.50
What DOLLAR is actually for: building a readable sentence, where text is the point.
=TEXT(VALUE(B2), "£#,##0.00")Result: £1,240.50
TEXT does the same with a symbol you choose. DOLLAR uses the system currency and cannot be overridden.
Now practise it
Reading about a formula is not the same as writing one. Open this function's exercise and type it into a real grid — you get instant feedback on exactly which cell is wrong and why.
Common errors and how to fix them
The column will not sum
Why it happens: DOLLAR returns text. SUM skips it exactly as it skips any other text.
How to fix it: Use cell formatting for columns of figures. Reserve DOLLAR for text you are building deliberately.
Wrong currency symbol
Why it happens: DOLLAR uses the system's currency setting despite its name, so it may not produce a dollar sign at all.
How to fix it: Use TEXT with an explicit format string: =TEXT(A2, "£#,##0.00").
#VALUE!
Why it happens: The number argument is text that has not been converted.
How to fix it: Wrap it in VALUE first, as in the examples above.
Tips worth knowing
- TEXT is DOLLAR with control over the format string, and is almost always the better choice.
- Cell formatting keeps the underlying number intact; DOLLAR and TEXT do not. Know which you need before choosing.
- A negative decimals argument rounds left of the point: DOLLAR(1240.5, -3) gives $1,000.
- FIXED is the sibling that formats with separators but no currency symbol.
Frequently asked questions
What is the difference between DOLLAR and formatting a cell as currency?
Cell formatting changes only how the number is displayed — the cell still holds a number and still adds up. DOLLAR replaces the number with text that looks the same and cannot be used in arithmetic.
Why does DOLLAR not show a dollar sign?
Despite the name, it uses your system's currency setting rather than always producing dollars. If you need a specific symbol regardless of locale, use TEXT with an explicit format string.
Should I use DOLLAR or TEXT?
TEXT, in nearly every case. It does everything DOLLAR does and lets you specify the exact format, including the currency symbol, the separators and the decimal places. DOLLAR is a shorthand for one common case.
Related functions
Guides that use it
Longer reads where this function does real work in a real sheet.