A method and non-transitory computer readable medium for formatting handwritten virtual ink. The method includes receiving handwritten input on an interactive display, the handwritten input including a plurality of strokes; associating a cell of a virtual canvas displayed on the interactive display with the handwritten input; making a determination that the handwritten input does not fit entirely within the cell; making a determination that at least a portion of the handwritten input is within a tolerance area associated with the cell; and applying a cell formatting decision to the portion of the handwritten input within the tolerance area.