Functional Skills Level 2 — Rounding and Estimation

Rounding to Decimal Places

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Rounding to 1 Decimal Place

When we round to 1 decimal place, we want just one digit after the decimal point. The key is to look at the second decimal digit to decide whether to round up or keep the first digit.

To round to 1 d.p.: look at the 2nd decimal digit (hundredths).
If ≥ 5, round UP the 1st decimal digit.  |  If < 5, leave the 1st decimal digit unchanged.
Units . Tenths Hundredths 3 . 7 4 4 < 5 → round DOWN Tenths stays: 7 → 3.7 Count 1 decimal place Look at 2nd decimal digit ≥ 5? Yes Round UP 1st d.p. No Keep 1st d.p.

Example 1: Round 3.74 to 1 decimal place

Step 1
Identify the 1st decimal place digit: 7 (tenths position in 3.74)
Step 2
Look at the 2nd decimal place digit: 4 (hundredths)
Step 3
Since 4 < 5, round DOWN — keep the tenths digit as 7
Step 4
Answer: 3.7
3.74 → 3.7  (2nd d.p. is 4, which is < 5, so round down)

Example 2: Round 5.86 to 1 decimal place

Step 1
1st decimal place digit: 8 (tenths position in 5.86)
Step 2
Look at the 2nd decimal place digit: 6
Step 3
Since 6 ≥ 5, round UP — 8 becomes 9
Step 4
Answer: 5.9
5.86 → 5.9  (2nd d.p. is 6, which is ≥ 5, so round up)
Tip: d.p. means decimal place. 1 d.p. means one digit after the decimal point.
✓ Quick Check 1 — Rounding to 1 Decimal Place
Question 1 of 10
Rounding to 2 and 3 Decimal Places

The same method applies for 2 and 3 decimal places — just look one digit further along. A very common mistake is sequential rounding — rounding more than once in steps. Always go back to the original number.

Rounding 3.745 to 2 d.p. Units . Tenths Hundredths Thousandths 3 . 7 4 5 5 ≥ 5 → UP 4 → 5 ✓ Correct: 3.75 3.75 → 3.8 ✗ WRONG Sequential rounding Number 1 d.p. 2 d.p. 3 d.p. 4.5678 4.6 4.57 4.568 2.3451 2.3 2.35 2.345 9.9995 10.0 10.00 10.000 Always round directly from the original number

Example 3: Round 3.745 to 2 decimal places

Step 1
We want 2 decimal places, so we keep: 3.74_
Step 2
Look at the 3rd decimal place: 5
Step 3
5 ≥ 5, so round UP the 2nd decimal place: 4 becomes 5
Step 4
Answer: 3.75   (NOT 3.7 — do not round again)
3.745 → 3.75  (3rd d.p. is 5, round up 2nd d.p.)

Example 4: Round 8.1234 to 3 decimal places

Step 1
We want 3 decimal places, so we keep: 8.123_
Step 2
Look at the 4th decimal place: 4
Step 3
4 < 5, so round DOWN — 3rd decimal place stays as 3
Step 4
Answer: 8.123
8.1234 → 8.123  (4th d.p. is 4, round down)
Common mistake — sequential rounding: 3.745 → 3.75 → 3.8 is WRONG. Always go back to the ORIGINAL number and look only at the digit one place beyond where you are rounding.
✓ Quick Check 2 — Rounding to 2 and 3 Decimal Places
Question 1 of 10
Decimal Places in Context

Rounding to decimal places appears constantly in currency (always 2 d.p.) and science (often 3 d.p. or more). The same rule always applies — identify the target place and check the digit immediately after.

π = 3.14159265… 1 d.p. 3.1 (2nd d.p. = 4 < 5 → down) 2 d.p. 3.14 (3rd d.p. = 1 < 5 → down) 3 d.p. 3.142 (4th d.p. = 5 ≥ 5 → up) 4 d.p. 3.1416 (5th d.p. = 9 ≥ 5 → up) Currency Rounding (2 d.p.) £14.746 6 ≥ 5 → Round UP £14.75 ✓ £8.123 3 < 5 → Round DOWN £8.12 ✓ £99.995 5 ≥ 5 → Round UP £100.00 ✓ Always round to 2 decimal places for pounds and pence

Example 5: A price is calculated as £14.746. Round to 2 d.p. (nearest penny)

Step 1
2 d.p. means pence — identify: £14.74_
Step 2
Look at the 3rd decimal place: 6
Step 3
6 ≥ 5, round UP the 2nd decimal place: 4 becomes 5
Step 4
Answer: £14.75
£14.746 → £14.75  (3rd d.p. is 6, round up)

Example 6: \(\pi \approx 3.14159\). Round to 3 decimal places.

Step 1
Keep 3 decimal places: 3.141_
Step 2
Look at the 4th decimal place: 5
Step 3
5 ≥ 5, round UP the 3rd decimal place: 1 becomes 2
Step 4
Answer: 3.142
\(\pi \approx 3.142\) to 3 d.p.  (4th d.p. is 5, round up)
✓ Quick Check 3 — Decimal Places in Context
Question 1 of 10

Practice: Round to the given number of decimal places

#NumberRound toYour answerResult
14.671 d.p.
23.241 d.p.
38.3562 d.p.
41.4742 d.p.
55.67893 d.p.
62.44442 d.p.
79.9952 d.p.
80.00553 d.p.
96.4831 d.p.
1012.3452 d.p.

⚠ Things to Watch Out For

  • Looking at the digit in the rounding position: To round to 1 d.p., look at the 2nd decimal digit (hundredths) to decide whether to round up or keep. The rounding digit itself doesn't round itself.
  • Sequential rounding: To round 3.745 to 1 d.p., use the ORIGINAL number. Look at 4 (hundredths) → it's less than 5, so 3.7. Do NOT first round to 3.75 then to 3.8 — that gives the wrong answer.
  • Dropping trailing zeros: 4.80 rounded to 2 d.p. should be written as 4.80, not 4.8. The trailing zero shows the precision required.
  • Money context: £4.5 should be written £4.50 to 2 d.p. — always write both decimal places for money.
  • Rounding 9.96 to 1 d.p.: Look at the hundredths digit (6 ≥ 5), round up the tenths: 9.9 → 10.0. The carry changes the whole number part.
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