Excel Lesson 7 – Number Formatting | Dataplexa
Lesson 7 · Basics Practical

Number Formatting

Here is something that surprises a lot of beginners — the number you see in a cell and the number actually stored in that cell are two different things. Number formatting controls how a value is displayed without changing the underlying value at all. The same number, 0.1872, can look like a plain decimal, a percentage, a currency amount, or a date — depending entirely on how you format it. This lesson teaches you to control that display with precision.

The Number Group on the Home Tab

The quickest number formatting options live in the Number group on the Home tab. You will see a dropdown showing the current format (usually "General"), plus a row of shortcut buttons for the most common formats. These buttons are what most people use day-to-day:

$
Currency
%
Percent
,
Comma
.0→
More Decimals
←.0
Fewer Decimals
General ▾
Format Dropdown

The Built-In Format Types

The format dropdown gives you a list of common built-in number formats. Here is what each one does and when you would use it:

Format Stored Value Displayed As Use When
General 1234.5 1234.5 Default — no specific formatting applied
Number 1234.5 1,234.50 Plain numbers with comma separator and fixed decimals
Currency 42000 $42,000.00 Financial values — adds currency symbol and aligns decimals
Accounting 42000 $ 42,000.00 Like Currency but aligns the $ symbol to the left of the cell
Percentage 0.1872 18.72% Ratios and rates stored as decimals between 0 and 1
Scientific 1500000 1.50E+06 Very large or very small numbers in scientific notation
Text 00145 00145 ID codes, ZIP codes — preserves leading zeros
Date 45658 15/01/2025 Date values stored as serial numbers

How Dates Actually Work in Excel

Dates deserve a special mention because they behave differently from other values. Excel stores every date as a plain integer — a serial number counting the days since 1 January 1900. So 15 January 2025 is stored as 45658. When you format a cell as a date, Excel takes that integer and displays it as a readable date.

The Same Value — Three Different Date Formats
Stored Value
45658
Serial number
Short Date
1/15/2025
mm/dd/yyyy
Long Date
January 15, 2025
mmmm d, yyyy
Custom
Jan-25
mmm-yy

Because dates are numbers, you can do arithmetic with them. Subtracting two dates gives you the number of days between them. Adding 30 to a date gives you the date 30 days later. This is exactly how Excel's date formulas work, and we will build on this in the Date Functions lesson.

The Format Cells Dialog — Full Control

The quick buttons in the Home tab handle most situations, but when you need full control over how a number looks, you open the Format Cells dialog. Get there by pressing Ctrl + 1 — the fastest way — or by right-clicking a cell and choosing Format Cells.

The Number tab inside this dialog shows you every built-in format category, and also gives you a live preview of what your cell will look like as you make changes. This is where you can also write your own custom formats.

Number Alignment Font Border Fill
General
Number
Currency
Accounting
Date
Percentage
Custom
PREVIEW
$42,000.00
DECIMAL PLACES
2
SYMBOL
$ English (US) ▾
Use 1000 separator (,) ☑

Custom Number Formats

Custom formats are where number formatting becomes really powerful. You write a format code using a simple set of symbols, and Excel displays your number exactly the way you specify. Open Format Cells (Ctrl+1) → Number → Custom and type your format code in the Type box.

Here are the key symbols you need to know:

0
Forces a digit — shows a zero if no digit is present. 00000 formats 145 as 00145
#
Optional digit — shows nothing if no digit is present. #,### formats 1200 as 1,200
.
Decimal point. #.00 always shows two decimal places.
,
Thousands separator. #,##0 formats 42000 as 42,000
%
Multiplies by 100 and adds % symbol. 0.00% formats 0.1872 as 18.72%
"text"
Adds literal text. #,##0 "units" formats 500 as 500 units
[Red]
Changes text colour. [Red]-#,##0 shows negative numbers in red.

A format code can have up to four sections separated by semicolons — the first controls positive numbers, the second negative numbers, the third zeros, and the fourth text. This lets you show negative numbers in red and zeros as a dash:

#,##0.00 ; [Red]-#,##0.00 ; "-" ; @

Positive:   42,000.00
Negative:   -8,500.00    (in red)
Zero:       -
Text:       displayed as-is

Practical Custom Format Examples

Goal Format Code Input Displays As
Thousands, no decimals #,##0 42000 42,000
Currency no decimals $#,##0 42000 $42,000
Thousands abbreviated #,##0,"K" 42000 42K
Percentage 1 decimal 0.0% 0.1872 18.7%
Padded ID number 000000 145 000145
Month and year only mmm yyyy 15/01/2025 Jan 2025
Positive green, negative red [Green]#,##0;[Red]-#,##0 -3200 -3,200

The Percentage Trap

This is one of the most common mistakes beginners make, so it is worth calling out clearly. When you format a cell as percentage, Excel multiplies the stored value by 100 for display. So if the cell contains 0.18 and you apply percentage format, it shows 18% — correct.

But if you type 18 into a cell and then apply percentage format, Excel shows 1800% — because it multiplied 18 by 100. The correct approach is to either type 0.18 first and then format as percentage, or type 18% directly, which tells Excel to store 0.18 automatically.

❌ Wrong
Type 18 → apply % format
1800%
18 × 100 = 1800
✅ Correct
Type 0.18 → apply % format
18%
0.18 × 100 = 18
✅ Also correct
Type 18% directly
18%
Excel stores 0.18 automatically
💡 Teacher's Note
Get into the habit of using Ctrl + 1 to open Format Cells. It works in any version of Excel, on any cell or range, and gives you the full picture in one place. The shortcut buttons in the ribbon are fine for quick changes, but when you are setting up a report that needs to look exactly right, Ctrl + 1 is where you want to be.

🟠 Practice

Q1. A cell contains 0.045. You apply Percentage format with one decimal place. What does the cell display?




Q2. Write a custom format code that displays 5000 as $5,000 with no decimal places.




Q3. What keyboard shortcut opens the Format Cells dialog?



🟣 Quiz

Q1. A cell contains 45658. You apply a Date format and it shows 15/01/2025. What happened to the stored value?







Q2. You want to display 42000 as 42K using a custom format. Which code achieves this?







Q3. Someone types 25 into a cell and then applies Percentage format. What does the cell show?






Next up — Sort & Filter, where you will learn how to organise and slice through your data to find exactly what you need, fast.