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Module 2
5 min

Conditional Formatting

Make your data colorful and easy to understand

Conditional Formatting

Conditional formatting automatically changes the color of cells based on their values.

Think of it like traffic lights:

  • Green = Good
  • Yellow = Warning
  • Red = Problem

Excel does this automatically for you.

Why Use It?

Look at these two tables:

Without formatting: 85, 42, 91, 38, 76, 55, 88, 29

With formatting: You instantly see which numbers are high (green) and low (red).

It makes data easy to understand at a glance.

Color Scale Example

How to Apply Conditional Formatting

Step 1: Select the cells you want to format

Step 2: Go to Home tab

Step 3: Click Conditional Formatting

Step 4: Choose a rule (like "Greater Than")

Step 5: Set your value and color

Step 6: Click OK

Done. Excel will now color your cells automatically.

Example 1: Highlight High Sales

You have sales numbers. You want to highlight all sales above 1000.

  1. Select your sales data
  2. Home tab > Conditional Formatting > Highlight Cell Rules > Greater Than
  3. Type: 1000
  4. Choose: Green Fill
  5. Click OK

Now all sales above 1000 are green.

Conditional Formatting Menu

Example 2: Highlight Low Stock

You have inventory. You want to see which items are low (below 10).

  1. Select your stock numbers
  2. Home tab > Conditional Formatting > Highlight Cell Rules > Less Than
  3. Type: 10
  4. Choose: Red Fill
  5. Click OK

Now all items below 10 are red. You know what to reorder.

Example 3: Color Scale

Color scale shows a range of colors from low to high.

  1. Select your data
  2. Home tab > Conditional Formatting > Color Scales
  3. Pick a color scheme (Green-Yellow-Red)

Now your data shows:

  • Lowest values = Red
  • Middle values = Yellow
  • Highest values = Green

Example 4: Data Bars

Data bars show mini bar charts inside cells.

  1. Select your data
  2. Home tab > Conditional Formatting > Data Bars
  3. Pick a color

Data Bars Example

Now each cell has a bar. Longer bar = bigger number. You can compare values instantly.

Types of Conditional Formatting

TypeWhat It DoesUse For
Highlight CellsColors cells based on valueAbove/below a number
Top/BottomColors top 10 or bottom 10Best/worst performers
Data BarsShows bars in cellsComparing numbers
Color ScalesGradient from low to highSeeing patterns
Icon SetsShows icons (arrows, stars)Status indicators
5 rows

Real Examples

Grades:

  • Green: 90 and above (A)
  • Yellow: 70-89 (B/C)
  • Red: Below 70 (Fail)

Budget:

  • Green: Under budget
  • Red: Over budget

Sales:

  • Data bars to compare salespeople

Inventory:

  • Red: Stock below 10 (reorder)
  • Green: Stock above 50 (good)

Tips

  • Use 2-3 colors maximum. Too many colors are confusing.
  • Green = Good, Red = Bad. Keep it simple.
  • Test your formatting with different values.

Summary

  • Conditional formatting colors cells automatically
  • Makes data easy to read at a glance
  • Home tab > Conditional Formatting
  • Use for highlighting high/low values, comparisons, and patterns
  • Keep colors simple and consistent

This is one of the most useful features in Excel for making professional reports.