DOLLARDE in Google Sheets

What Is DOLLARDE Function in Google Sheets?

The DOLLARDE function in Google Sheets converts a dollar value or price quotation in a fractional value into a decimal value. It works by dividing the fraction part of the value by the integer value specified by the user. Its primary use is in pricing US treasury bond quotes, which are priced to the nearest 1/32 of a dollar. In the U.S. securities market, especially fixed-income securities and bonds, are represented in terms of dollars and fractions of a dollar. The function is used by financial analysts when they prepare financial reports with stock market quotes as one uses fractional dollars for security prices. Thus, DOLLARDE is useful when you have to convert a dollar fractional value into a dollar value as a decimal notation.

In the example below, we have a dollar value which we should convert to a 1/32nd precision. Enter the following function:

=DOLLARDE(1000.20, 32). It converts 1000.20 to a decimal value of 1000.625. Similarly, a price of $1000 1/8 would mean $1000.125.

Syntax

Before we do a deep dive into the function, let us look at its syntax.

=DOLLARDE(fractional_price, fraction).

Arguments:

fractional_price – the price quotation that is expressed as an integer part and a decimal part representing the fraction.

fraction – specifies the units of the fraction (e.g., 16 for 1/16ths, 32 for 1/32nds).

How To Use DOLLARDE Function in Google Sheets?

To convert a price to a desired fractional precision, we use DOLLARDE. We can enter the DOLLARDE function manually or through the Google menu at the top.

Let us look at each of these methods.

1. Entering the DOLLARDE function Manually
2. Entering through the Google Menu bar

Step 1: We have entered a few values in Column A in cells A1 to A3. Let us try to convert them to a precision of 1/16th. In case you have a fractional value like say, 20 3/8, it means that the fractional part is expressed in eighths.

Step 2: Enter the following formula in cell B1.  =DOLLARDE(A1,16). Here, 16 represents the unit of the fraction. We close the parentheses after entering the arguments and press Enter.

Step 3: Once you hit Enter, you obtain the result in cell B1.

Step 4: Drag the formula to cell B3 to obtain the results for the other values.

Thus, the above example shows how the DOLLARDE function works to convert a fractional dollar value to a decimal value.

Access From the Google Menu

One can access DOLLARDE in Google Sheets from the Menu bar and directly use it.

• Step 1: Choose an empty cell to get the output.
• Step 2: Go to the “Insert” tab and click on Function.
• Step 3: Choose the option Financial and select the DOLLARDE function.

Thus, the DOLLARDE in Google Sheets can be accessed in two ways; either by entering it manually or through the Google menu bar

Examples

DOLLARDE is especially useful for financial calculations that have fractional dollar amounts, such as securities and other financial instruments. Let us look at some examples below to understand the function further. 

Example #1 – Convert a Dollar Price to the Precision of 1/8 of a Dollar

Let us look at an example where we have some values in fractional form.

Step 1: We have entered a few dollar values in fractional form as shown below.

Step 2: To convert this to a decimal format with 1/8 precision, we enter the following function:

=DOLLARDE(A1, 8). To enter the value directly, we can enter it as

=DOLLARDE(125.5, 8)

We have the number 125.5. Now, using the fractional value of 8, DOLLARDE returns 125.625 in decimal format, because 125.5 to 1/8th precision makes the fractional part 5/8, which is 0.625

Step 3: Let’s test it with the next value. 12.4. In cell B2, enter the formula:

=DOLLARDE(A2, 16)

We convert 12.4 into decimal format.

Since 1/16 precision is what we want, DOLLARDE converts the fractional part as 40/16, which is 2.5. Hence, 12.4 becomes 14.5.

Output: The output will be 14.5.

Using DOLLARDE, we can simply convert any fractional price into a decimal price with the specified precision, such as 1/8 of a dollar.

Example #2 – Convert a Dollar Price to the Precision of 1/16 of a Dollar

Let’s say we want to convert a price such as 100.25 and 50.6 to the precision of 1/16 of a dollar.

Enter these values in cells A1 and A2.

Step 1: In cell B1, enter the following formula to convert it to decimal with 1/16 precision:

=DOLLARDE(A1, 16).

You get 101.5625.

Explanation: Here, 100.25 in 1/16th precision is written as 100 for the integer and 25/16 for the decimal part. 25/16 gives 1.5625. Hence the integer part becomes 101 and the decimal part is 0.5625 and we get 101.5625.

Step 2: For the second value of 50.6, we drag the formula to B2. It becomes

=DOLLARDE(A2, 16).

We get 53.75 as a result.

Explanation: 50.6 is written as 50 as the integer part and 60/16 as the fractional part. We get 3.75 as the decimal equivalent of the fractional part. Hence, 50.6 becomes 53.75.

Example #3 – Calculate the Decimal Value of a Fractional Stock Price

To calculate the decimal value of a fractional stock price using the DOLLARDE function, we specify the fractional dollar amount and the fraction’s denominator. In this example, we have some stock prices listed in Column A. Let us use the DOLLARDE function to get its decimal value.

Step 1: As seen below, we have entered the values in a spreadsheet.

Step 2: Let us calculate their decimal equivalents. We all know that the syntax of the DOLLARDE function is:

DOLLARDE(fractional_dollar, fraction).

Hence, we enter the following function in cell B2.

=DOLLARDE(A2,8).

Step 3: Drag the formula till cell B6. Now, we get the results as shown below. Similarly, DOLLARDE can help with pricing the US treasury bonds quotes,  to 1/32nd of a dollar.

DOLLARDE vs DOLLARFR

DOLLARDE in Google Sheets converts a price quotation that is provided in a decimal fractional format into a decimal value. DOLLARFR converts a dollar value into a decimal notation into a value expressed in fractional notation. Let us look at the points below.

DOLLARDE:

1. Converts a price quotation from a fractional format (e.g., 100 1/8) to a decimal format. E.g., for bonds
2. The syntax is as follows: =DOLLARDE(fractional_price, unit)
3. fractional_price: The price expressed with a fraction.
4. unit: The integer to use in the denominator of the fraction.
5. If you have a bond price of 100.75 and want to convert it to decimal, you will use =DOLLARDE(100.75, 8).

DOLLARFR:

1. It converts a decimal dollar value into a fractional dollar value.
2. The syntax is as follows: =DOLLARFR(decimal_value, fraction)
3. decimal_value: The decimal dollar value.
4. fraction: The integer to use in the denominator of the fraction.
5. If you have a decimal value of 100.125 and want to convert it to a fractional format, you would use =DOLLARFR(100.125, 8).

Important Things to Note

1. If the fractional part(second argument) is not an integer, it will be truncated.
2. We get an #NUM! error if the fraction argument is less than zero.
3. An #DIV/0 error occurs when the fraction argument is given is zero.
4. The DOLLARDE function is useful when we have to convert values that are given as 16¼ to the decimal for usage in calculations.

Frequently Asked Questions (FAQs)

Download Template

This article must help understand DOLLARDE Function in Google Sheets with its formulas and examples. You can download the template here to use it instantly.

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