Java docs

The BigDecimal class provides operations for arithmetic, scale manipulation, rounding, comparison, hashing, and format conversion. The toString() method provides a canonical representation of a BigDecimal.

The BigDecimal class gives its user complete control over rounding behavior. If no rounding mode is specified and the exact result cannot be represented, an exception is thrown; otherwise, calculations can be carried out to a chosen precision and rounding mode by supplying an appropriate MathContext object to the operation. In either case, eight rounding modes are provided for the control of rounding. Using the integer fields in this class (such as ROUND_HALF_UP) to represent rounding mode is largely obsolete; the enumeration values of the RoundingMode enum, (such as RoundingMode.HALF_UP) should be used instead.

When a MathContext object is supplied with a precision setting of 0 (for example, MathContext.UNLIMITED), arithmetic operations are exact, as are the arithmetic methods which take no MathContext object. (This is the only behavior that was supported in releases prior to 5.) As a corollary of computing the exact result, the rounding mode setting of a MathContext object with a precision setting of 0 is not used and thus irrelevant. In the case of divide, the exact quotient could have an infinitely long decimal expansion; for example, 1 divided by 3. If the quotient has a nonterminating decimal expansion and the operation is specified to return an exact result, an ArithmeticException is thrown. Otherwise, the exact result of the division is returned, as done for other operations.

When the precision setting is not 0, the rules of BigDecimal arithmetic are broadly compatible with selected modes of operation of the arithmetic defined in ANSI X3.274-1996 and ANSI X3.274-1996/AM 1-2000 (section 7.4). Unlike those standards, BigDecimal includes many rounding modes, which were mandatory for division in BigDecimal releases prior to 5. Any conflicts between these ANSI standards and the BigDecimal specification are resolved in favor of BigDecimal.

Since the same numerical value can have different representations (with different scales), the rules of arithmetic and rounding must specify both the numerical result and the scale used in the result's representation.

In general the rounding modes and precision setting determine how operations return results with a limited number of digits when the exact result has more digits (perhaps infinitely many in the case of division) than the number of digits returned. First, the total number of digits to return is specified by the MathContext's precision setting; this determines the result's precision. The digit count starts from the leftmost nonzero digit of the exact result. The rounding mode determines how any discarded trailing digits affect the returned result.

For all arithmetic operators , the operation is carried out as though an exact intermediate result were first calculated and then rounded to the number of digits specified by the precision setting (if necessary), using the selected rounding mode. If the exact result is not returned, some digit positions of the exact result are discarded. When rounding increases the magnitude of the returned result, it is possible for a new digit position to be created by a carry propagating to a leading "9" digit. For example, rounding the value 999.9 to three digits rounding up would be numerically equal to one thousand, represented as 100×101. In such cases, the new "1" is the leading digit position of the returned result.

Besides a logical exact result, each arithmetic operation has a preferred scale for representing a result. The preferred scale for each operation is listed in the table below.