How to categorize bank transactions in Excel?

Let's say you receive bank transactions every month and want to group the transactions into different categories based on the description of each item, so that you can know a more specific breakdown of the cost each month.
As shown in the screenshot below, you want to convert the description in column B to a simpler and easier classification based on some keywords. For example, if the cell contains "Mc Donalds", categorize the expense as "Takeout", if the cell contains "Walmart", categorize the expense as "Family fee", etc., according to your own needs. This tutorial provides a formula to help you get it done.

Categorize bank transactions with formula in Excel

Categorize bank transactions with formula in Excel

The following formula can help to categorize bank transaction in Excel, please do as follows.

1. Firstly, you need to create two helper columns containing the keywords in the Description column and the corresponding categories respectively. In this case, the helper columns are in the range A29:B41. See screenshot:

2. Select a blank cell (the cell F3 in this case) next to the last column in the original table, enter the below formula into it and press the Ctrl + Shift + Enter keys to get the first result.

=IFERROR(INDEX(B$30:B$41,MATCH(TRUE,ISNUMBER(SEARCH($A$30:$A$41,B3)),0)),"Other")

Select this result cell, drag its AutoFill Handle down to get the rest of the results.

Notes:

1) In the formula, B$30:B$41 is the helper column containing the specified categories you created in step 1;

2) $A$30:$A$41 is the helper column contains the keywords of the “Description” column;

2) B3 is the cell in the “Description” column where you want to start categorize the cost;

3) “Other” in the formula means that if there is no matching category, the formula will return the result as “Other”.

Please change the variables in the formula as you need.

Best Office Productivity Tools

🤖	Kutools AI Aide: Revolutionize data analysis based on: Intelligent Execution \| Generate Code \| Create Custom Formulas \| Analyze Data and Generate Charts \| Invoke Kutools Functions…
	Popular Features: Find, Highlight or Identify Duplicates \| Delete Blank Rows \| Combine Columns or Cells without Losing Data \| Round without Formula ...
	Super Lookup: Multiple Criteria VLookup \| Multiple Value VLookup \| VLookup Across Multiple Sheets \| Fuzzy Lookup ....
	Advanced Drop-down List: Quickly Create Drop Down List \| Dependent Drop Down List \| Multi-select Drop Down List ....
	Column Manager: Add a Specific Number of Columns \| Move Columns \| Toggle Visibility Status of Hidden Columns \| Compare Ranges & Columns ...
	Featured Features: Grid Focus \| Design View \| Big Formula Bar \| Workbook & Sheet Manager \| Resource Library (Auto Text) \| Date Picker \| Combine Worksheets \| Encrypt/Decrypt Cells \| Send Emails by List \| Super Filter \| Special Filter (filter bold/italic/strikethrough...) ...
	Top 15 Toolsets: 12 Text Tools (Add Text, Remove Characters, ...) \| 50+ Chart Types (Gantt Chart, ...) \| 40+ Practical Formulas (Calculate age based on birthday, ...) \| 19 Insertion Tools (Insert QR Code, Insert Picture from Path, ...) \| 12 Conversion Tools (Numbers to Words, Currency Conversion, ...) \| 7 Merge & Split Tools (Advanced Combine Rows, Split Cells, ...) \| ... and more

Supercharge Your Excel Skills with Kutools for Excel, and Experience Efficiency Like Never Before. Kutools for Excel Offers Over 300 Advanced Features to Boost Productivity and Save Time. Click Here to Get The Feature You Need The Most...

Description

Office Tab Brings Tabbed interface to Office, and Make Your Work Much Easier

Enable tabbed editing and reading in Word, Excel, PowerPoint, Publisher, Access, Visio and Project.
Open and create multiple documents in new tabs of the same window, rather than in new windows.
Increases your productivity by 50%, and reduces hundreds of mouse clicks for you every day!

🤖	Kutools AI Aide: Revolutionize data analysis based on: Intelligent Execution \| Generate Code \| Create Custom Formulas \| Analyze Data and Generate Charts \| Invoke Kutools Functions…
	Popular Features: Find, Highlight or Identify Duplicates \| Delete Blank Rows \| Combine Columns or Cells without Losing Data \| Round without Formula ...
	Super Lookup: Multiple Criteria VLookup \| Multiple Value VLookup \| VLookup Across Multiple Sheets \| Fuzzy Lookup ....
	Advanced Drop-down List: Quickly Create Drop Down List \| Dependent Drop Down List \| Multi-select Drop Down List ....
	Column Manager: Add a Specific Number of Columns \| Move Columns \| Toggle Visibility Status of Hidden Columns \| Compare Ranges & Columns ...
	Featured Features: Grid Focus \| Design View \| Big Formula Bar \| Workbook & Sheet Manager \| Resource Library (Auto Text) \| Date Picker \| Combine Worksheets \| Encrypt/Decrypt Cells \| Send Emails by List \| Super Filter \| Special Filter (filter bold/italic/strikethrough...) ...
	Top 15 Toolsets: 12 Text Tools (Add Text, Remove Characters, ...) \| 50+ Chart Types (Gantt Chart, ...) \| 40+ Practical Formulas (Calculate age based on birthday, ...) \| 19 Insertion Tools (Insert QR Code, Insert Picture from Path, ...) \| 12 Conversion Tools (Numbers to Words, Currency Conversion, ...) \| 7 Merge & Split Tools (Advanced Combine Rows, Split Cells, ...) \| ... and more

Changelog

Feature Tutorials

Get Help?