How to Calculate DA on Basic Salary in Excel (3 Easy Ways)

We’ll use the following dataset, which contains basic employee information, including Name, Salary, Total Days, and Worked Days.

How to Calculate DA on Basic Salary in Excel


Method 1 – Using IF Function to Calculate DA on Basic Salary

We’ll start with a basic dataset for employee names and their salaries.

Steps:

  • Select cell D5 to calculate the DA percentage.
  • Insert the following formula in the D5 cell.
=IF(C5>=7000,"8%","7%")

How to Calculate DA on Basic Salary in Excel

If the salary is greater than or equal to $7,000, the function will return the DA percentage as 8%. Otherwise, it will return 7%.

  • Press Enter to get the value in the DA Percentage column.

  • Drag the Fill Handle icon to AutoFill the corresponding data in the cells D5:D9.

  • Here’s the filled column.

How to Calculate DA on Basic Salary in Excel

  • Select the cell E5 to show the DA Amount.
  • Use the following formula in E5.
=C5*D5

We have multiplied the Salary range by the DA Percentage to get the final DA Amount.

  • Press Enter to get the DA Amount.
  • Drag the Fill Handle icon to AutoFill the corresponding data in the rest of the cells E5:E9.

How to Calculate DA on Basic Salary in Excel


Method 2 – Applying IF and Round Functions to Calculate DA on Basic Salary

We’ll use the expanded dataset with four columns: Name, Salary, Total Days, and Worked Days.

How to Calculate DA on Basic Salary in Excel

Steps:

  • Select F5 to calculate the DA Amount.
  • Use the following formula in the F5 cell.
=IF(E5=0,"",ROUND(C5/D5*E5*7%,-1))

Formula Explanation

  • E5=0: this is the condition of the IF Function.
  • “”: When the IF condition satisfies, it will return a blank cell.
  • ROUND(C5/D5*E5*7%,-1): When the IF function does not satisfy it will round the DA value of to the decimal figure.
  • IF(E5=0,””,ROUND(C5/D5*E5*7%,-1)): It will check if the Worked Days value equals to 0 to return the DA amount. If the worked days equal to 0, it will return the DA amount as a space otherwise it will return the DA amount
  • Press Enter to get the value of DA Amount.

  • Drag the Fill Handle icon to AutoFill the rest of the cells F5:F9.

How to Calculate DA on Basic Salary in Excel


Method 3 – Using a Generic Formula to Calculate DA on Basic Salary

We’ll use the simple dataset to calculate a DA as 12% of the salary.

How to Calculate DA on Basic Salary in Excel

Steps:

  • Select cell D5.
  • Insert the following formula.
=(C5*12)/100

We have multiplied Salary by 12 and then divided it by 100.

  • Press Enter to get the value of Dearness Allowance.
  • Drag down the Fill Handle.

How to Calculate DA on Basic Salary in Excel


Practice Section

You can download the free workbook and practice in the sample dataset.


Download the Practice Workbook


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Musiha Mahfuza Mukta
Musiha Mahfuza Mukta

Musiha Mahfuza Mukta is a marine engineer who loves exploring Excel and VBA programming. To her, programming is a time-saving tool for dealing with data, files, and the internet. She's skilled in Rhino3D, Maxsurf, C++, MS Office, AutoCAD, and Excel & VBA, going beyond the basics. With a B.Sc in Naval Architecture & Marine Engineering from BUET, she's shifted gears and now works as a content developer. In this role, she creates techy content exclusively focused on Excel... Read Full Bio

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