Arithmetic overflow error converting numeric to data type numeric in SQL Server

This error comes when we try to store an out-of-range floating point value into a numeric variable. For example, if NUMERIC or DECIMAL variable is defined as NUMERIC(5,2) than the maximum value it can hold is 999.99, if we try to store something like 999.999 then it will throw "Arithmetic overflow error converting numeric to data type numeric". One of the common reasons for this error is the ignorance and misunderstanding of the NUMERIC data type.

See the example

Output

Arithmetic overflow error converting numeric to data type numeric.