How to use IF function with 3 conditions

July 11, 2024July 11, 2024

I received a lot of questions on how to use the IF function with 3 conditions, so I’ve decided to write an article on this topic.

The IF examples described in this article assume that you have a basic understanding of how the IF function works. All examples from this article work in Excel for Microsoft 365 or Excel 2021, 2019, 2016, 2013, 2010, and 2007.

IF is one of the most used Excel functions. In case you are unfamiliar with the IF function, then I strongly recommend reading my article on the Excel IF function first. It’s a step-by-step guide, and it includes a lot of useful examples. It also shows the basics of writing an Excel IF statement with multiple conditions, but it’s not as detailed as this guide. Make sure you also download the exercise file.

As a data analyst, you need to be able to evaluate multiple conditions at the same time and perform an action or display certain values when the logical tests are TRUE. This means that you will need to learn how to write more complex formulas, which sooner or later will include multiple IF statements in Excel, nested one inside the other.

Let’s take a look at how to write a simple IF function with 3 logical tests.

How to use the IF function with 3 conditions

The first example uses an IF statement with three OR conditions. We will use an IF formula which sets the Finance division name if the department is Accounting, Financial Reporting, or Planning & Budgeting.

The IF statement from cell E31 is:
=IF(OR(D31="Accounting", D31="Financial Reporting", D31="Planning & Budgeting"), "Finance", "Other")

This IF formula works by checking three OR conditions:

• Is the data from the cell D31 equal to Accounting? In our case, the answer is no, and the formula continues and evaluates the second condition.
• Is the text from the cell D31 equal to Financial Reporting? The answer is still no, and the formula continues and evaluates the third condition.
• Is the text from the cell D31 equal to Planning & Reporting? The answer is yes, our IF function returns TRUE, and displays the word Finance in cell E31.

Next, we focus our attention on an example that uses an IF statement with three AND conditions.

Our table shows exam scores for three exams. If the student received a score of at least 70 for all three exams, then we will return Pass. Otherwise, we will display Fail.

The IF statement from cell H53 is:
=IF(AND(E53>=70, F53>=70, G53>=70), "Pass", "Fail")

This IF formula works by checking all three AND conditions:

• Is the score for Exam 1 higher than or equal to 70? In our case, the answer is yes, and the formula continues and evaluates the second condition.
• Is the score for Exam 2 higher than or equal to 70? Well, yes it is. Now the formula moves to the third condition.
• Is the score for Exam 3 higher than or equal to 70? Yes, it is. Since all three conditions are met, the IF statement is TRUE and returns the word Pass in cell H53.

Excel IF statement with multiple conditions

The final section of this article is focused on how to write an Excel IF statement with multiple conditions, and it includes two examples:

• multiple nested IF statements (also known as nested IFS)
• formula with a mix of AND, OR, and NOT conditions

How many IF statements can you nest in Excel? The answer is 64, but I’ve never seen a formula that uses that many. Also, I’m sure that there are far better alternatives to using such a complicated formula.

Multiple nested IF statements

In this example, I have calculated the grades of the students based on their scores using a formula with 4 nested IF functions.

=IF(E107<60, "F", IF(E107<70, "D", IF(E107<80, "C", IF(E107<90, "B" ,"A"))))

Note: In this case, the order of the conditions influences the result of your formula. When your conditions overlap, Excel will return the [value_if_true] argument from the first IF statement that is TRUE and ignores the rest of the values. If you want your formula to work properly, always pay attention to the logical flow and the order of your nested IF functions.

If you have to write an IF statement with 3 outcomes, then you only need to use one nested IF function. The first IF statement will handle the first outcome, while the second one will return the second and the third possible outcomes.

Note: If you have Office 365 installed, then you can also use the new IFS function. You can read more about IFS on Microsoft’s website.

Multiple IF statements in Excel with AND, OR, and NOT conditions

I have saved the best for last. This example is the most advanced from this article, as it involves an IF statement with several other logical functions.

In the exercise file, I have included a list of orders. Each row includes the order date, the order value, the product category, and the free shipping flag. We want to flag orders as eligible if the following cumulative logical conditions are met:

• the order was placed during 2020
• the order includes products from only two categories: PC or Laptop
• the order was not flagged as Free shipping

The formula I’ve used for cell H80 is shown below:

=IF(AND(D80>=DATE(2020,1,1), D80<=DATE(2020,12,31), OR(F80="PC", F80="Laptop"), NOT(G80="Yes")), "Eligible", "Not eligible")

Here’s how this works:

1. AND makes sure that all the logical conditions need to be met to flag the order as Eligible. If any of them is FALSE, then our entire IF statement will return the [value_if_false] argument.
2. D80>=DATE(2020,1,1) and D80<=DATE(2020,12,31) check if the order was placed between January 1st and December 31st, 2020.
3. OR is used to check whether the product category is PC or Laptop.
4. Finally, NOT is used to check if the Free shipping flag is different from Yes.

I’ve also added a video that shows how to nest IF functions in case you are still having difficulties understanding how a nested IF formula works.

And there you have it. I hope that after reading this guide, you have a much better understanding of using IF function with 3 logical tests (or any number actually). While it may seem intimidating at first, I guarantee that if you write an IF formula with multiple criteria daily, your productivity will eventually skyrocket.

This is why, if you have any questions on how to use the IF function with 3 conditions, please leave a comment below and I will do my best to help you out. I reply to every comment or email that I receive.