Instantly round any dollar amount to the nearest cent (hundredth)
| Original Amount | Rounded to Nearest Cent | Explanation |
|---|---|---|
| $19.999 | $20.00 | Third decimal (9) ≥ 5, round up |
| $12.345 | $12.35 | Third decimal (5) rounds up |
| $7.894 | $7.89 | Third decimal (4) < 5, round down |
| $99.996 | $100.00 | Rounds up to next dollar |
| $0.004 | $0.00 | Rounds down to zero cents |
| $45.555 | $45.56 | Third decimal (5) rounds up |
Rounding to the nearest cent means rounding a dollar amount to two decimal places, which represents the hundredths place in currency. This is essential for accurate financial calculations, pricing, accounting, and everyday money transactions.
Identify the digit in the thousandths place (third decimal position). For $12.345, this is the "5".
If the third decimal is 5 or greater, round UP. If it's less than 5, round DOWN.
Keep only two decimal places. For $12.345, the result is $12.35.
Sales Tax Calculations: $49.99 × 8.5% tax = $4.24915 → rounds to $4.25
Tip Calculations: $83.47 × 18% = $15.0246 → rounds to $15.02
Discounts: $129.99 × 15% off = $19.49850 discount → rounds to $19.50
Unit Pricing: $12.99 ÷ 3 items = $4.33 per item (rounded to nearest cent)
Gas Prices: 12.5 gallons × $3.459/gallon = $43.2375 → rounds to $43.24
What is a cent? One cent = 1/100 of a dollar = $0.01 = two decimal places
When to use: Any calculation involving money, prices, wages, taxes, or financial records
Business rule: Most retailers and businesses round to the nearest cent for all transactions