IFERROR evaluates the value argument — which is typically a complete formula — and checks whether the result belongs to any of Excel's seven error types: #N/A, #VALUE!, #REF!, #DIV/0!, #NAME?, #NUM!, or #NULL!. If the formula produces a valid result of any kind, including zero, FALSE, or an empty string, IFERROR returns that result unchanged. If the formula produces any error, IFERROR returns the value_if_error argument instead and ignores the error entirely. Always place IFERROR as the outermost wrapper around a formula rather than nesting it inside. Write IFERROR(
VLOOKUP(...),"Not found") not VLOOKUP(IFERROR(...),table,2,FALSE). A critical behaviour to keep in mind: IFERROR catches all errors without distinguishing between expected errors like missing lookup values and unexpected errors caused by formula bugs. Test the inner formula thoroughly without IFERROR before wrapping it, so you know that any errors being caught are the ones you deliberately designed the formula to handle.