SQL Fundamentals

Arithmetic & Numeric Functions: Interview

Why should financial calculations use DECIMAL instead of FLOAT? DECIMAL stores base-10 values with declared precision and scale, so currency arithmetic remains

Why should financial calculations use DECIMAL instead of FLOAT?

DECIMAL stores base-10 values with declared precision and scale, so currency arithmetic remains exact. FLOAT is approximate binary arithmetic and can accumulate rounding differences.

Connect the data type choice to reconciliation, reporting, and regulatory accuracy.