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Functional Skills Level 2 — Rounding and Estimation

Rounding to Decimal Places

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How Do You Round to 1 Decimal Place?

To round a number to 1 decimal place, keep just one digit after the decimal point. Look at the second decimal digit: if it is 5 or more, round the first decimal digit up; if it is 4 or less, leave the first decimal digit as it is.

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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