We will use the network topology below as example.

SW1 and SW2 are connected by two crossover cables, one cable connecting port
fa0/1 on both switches and the other connecting fa0/2 on both switches.

How to Configure Ethernet Channel.

To enable EtherChannel on an interface, you must configure all ports within the
bundle the same as well as their operation status.
That means, both ends of an EtherChannel require similar configuration.
The example below demonstrates the configuration and verification of
EtherChannel. You can use the latest version of Packet Tracer version 6.0.1.0011
for practice.
EtherChannel configuration command:
Switch(config)# interface range fa0/1 8 {You can use the range or single
interface}
Switch(config-if)# channel-group [1 6] mode [auto | desirable | on | active |
passive]
The EtherChannel Configuration Modes.

Auto : This mode activate PAgP. This is Cisco proprietary implementation (for
network with only Cisco Switches), it places a LAN port into a passive negotiating
state, in which the port responds to PAgP packets it receives but does not initiate
PAgP negotiation. (Default).
e.g configuration:
SW1(config)#interface range f0/1-2
SW1(config-if-range)#channel-group 1 mode auto
SW1(config-if-range)#end
SW1#
Desirable: This mode also activate PAgP. This is Cisco proprietary implementation
and
the most recommended mode, it places a LAN port into an active negotiating state, in
which the port initiates negotiations with other LAN ports by sending PAgP
packets.
e.g configuration:
SW1(config)#interface range f0/1-2
SW1(config-if-range)#channel-group 1 mode desirable
SW1(config-if-range)#end
SW1#
Active activate LACP. This is the industry standard implementation (network with
different vendor switches), This mode places a port into a passive negotiating state,
in which the port responds to LACP packets it receives but does not initiate LACP
negotiation. (Default).
e.g configuration:
SW1(config)#interface range f0/1-2
SW1(config-if-range)#channel-group 1 mode active
SW1(config-if-range)#end
SW1#
Passive activate LACP.This is the industry standard implementation (network with
different vendor switches). This mode places a port into an active negotiating state,
in which the port initiates negotiations with other ports by sending LACP packets.
e.g configuration:
SW1(config)#interface range f0/1-2
SW1(config-if-range)#channel-group 1 mode passive

SW1(config-if-range)#end
SW1#
Mode on forces the interface to channel traffic without PAgP or LACP. You can
only use the on mode if only a LAN port group in the on mode is connected to
another LAN port group in the on mode.
e.g configuration :
SW1(config)#interface range f0/1-2
SW1(config-if-range)#channel-group 1 mode on
SW1(config-if-range)#end
SW1#

After your configuration, use the show show spanning-tree command to view
spanning-tree for VLAN 1; you will see only a port-channel, the spanning-tree
cost and you will also notice that the port-channel is now being considered as
spanning-tree type shared.
You can add more physical ports, Spanning tree will see the logical port-channel
as a single port.
Switch0# show spanning-tree
VLAN0001
Spanning tree enabled protocol rstp

Root ID Priority 32769

Address 0bC0.75DA.09cB
Cost
9
Port
27(Port-channel 1)
Hello Time 2 sec Max Age 20 sec Forward Delay 15 sec
Bridge ID Priority 32769 (priority 32768 sys-id-ext 1)
Address 00D0.e011.2C03
Hello Time 2 sec Max Age 20 sec Forward Delay 15 sec
Aging Time 20
Interface
Role Sts Cost
Prio.Nbr Type
---------------- ---- --- --------- -------- -------------------------------Po1
Root FWD 9
128.27 Shr
- See more at: http://www.orbit-computer-solutions.com/Understand-EtherChannelConfiguration-on-Cisco-Switches.php#sthash.fYiiUe6r.dpuf