Thousand separators improve readability of large numbers by grouping digits into sets of three. Instead of reading 1234567 as a continuous string, formatting as 1,234,567 (comma separator) or 1.234.567 (period separator) enables instant comprehension—'one million two hundred thirty-four thousand'. The human brain processes grouped information more efficiently; separators reduce cognitive load when scanning financial data, statistics, or large datasets. Formatting conventions vary by locale: US/UK use commas (1,234,567.89), continental Europe uses periods (1.234.567,89), and some regions use spaces (1 234 567,89).
Number formatting algorithms insert separators at fixed intervals from the decimal point outward. For 1234567.89, start at the decimal, count three digits left (567), insert separator (1234,567.89), count three more (234), insert separator (1,234,567.89). Decimals remain unchanged unless locale-specific decimal separators differ (comma vs period). For very large numbers, separators extend indefinitely: 1,234,567,890,123. Edge cases include numbers less than 1,000 (no separators needed) and negative numbers (preserve minus sign: -1,234,567).
Locale-aware formatting adapts to regional conventions automatically. JavaScript Intl.NumberFormat, Python locale.format, and similar APIs detect user locale and apply appropriate separators, decimal marks, and currency symbols. For example, formatting 1234567.89 as currency: en-US produces '$1,234,567.89', de-DE produces '1.234.567,89 €', fr-FR produces '1 234 567,89 €'. Global applications must support multiple formats or detect user locale to ensure numbers display according to local expectations.