Why it matters

BCD keeps decimal math exact for money and calculators. Understanding shapes storage and arithmetic.

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The architecture

Packed BCD: two digits per byte.

Add-3 correction for overflow.

Slower than binary but decimal-exact.

BCD representationPacked BCD2 digits/byteAdd-3 correctionfor carriesExact base-10no roundingIBM mainframes, calculators, and some databases use BCD for money
BCD representation.
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How it works end to end

Calculators use BCD.

IBM mainframes offer BCD arithmetic.

Databases may use decimal types for money.