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Microsoft Excel is a software program that is used to analyze, organize, and manipulate data. One of the most powerful features of Excel is the ability to create and use formulas, which can be used to perform calculations on data within a worksheet. In this article, we will explore the various ways you can create and use formulas in Excel.

How to Create Formulas in Excel

Formulas are created in Excel by using operators and cell references. An operator is a symbol or function that tells Excel what to do with a cell reference. The most commonly used operators in Excel are:

  • +
  • *
  • /
  • ^

A cell reference is the address of a cell in the worksheet. For example, the cell reference for cell A1 in the worksheet is “A1”.

To create a formula in Excel, follow these steps:

  1. Select the cell where you want the result of the formula to be displayed.
  2. Type the equals sign (=) in the cell. The equals sign tells Excel that you are creating a formula.
  3. Type the operator that you want to use in the formula.
  4. Select the first cell that you want to use in the formula. This is known as the cell reference.
  5. Type the operator again.
  6. Select the second cell that you want to use in the formula.
  7. Press Enter to complete the formula.

Example

Let’s say you have a worksheet that contains two columns of numbers, A and B. You want to create a formula to add up the numbers in each column and display the result in column C. Here’s how you would do it:

  1. Select cell C1.
  2. Type =SUM(A1:B1) in the cell.
  3. Press Enter.
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The result of the formula will be displayed in cell C1.

How to Use Functions in Excel

Functions are built-in formulas that perform a specific calculation in Excel. Functions can be used to perform a wide range of calculations, such as finding the average of a set of numbers, counting cells that meet certain criteria, and finding the maximum or minimum value in a range of cells.

To use a function in Excel, follow these steps:

  1. Select the cell where you want the result of the function to be displayed.
  2. Type the name of the function that you want to use in the cell. Function names are always followed by an opening parenthesis.
  3. Enter the arguments for the function in the parentheses. Arguments can be cell references, numbers, or text strings. Multiple arguments are separated by commas.
  4. Close the parentheses.
  5. Press Enter to complete the function.

Example

Let’s say you have a worksheet that contains a range of numbers in column A. You want to find the average of these numbers and display the result in cell B1. Here’s how you would do it:

  1. Select cell B1.
  2. Type =AVERAGE(A1:A10) in the cell.
  3. Press Enter.

The result of the function will be displayed in cell B1.

How to Create Formulas that Use Cell References

Excel allows you to create formulas that use cell references so that you can automatically update your calculations as the data in the worksheet changes. To create a formula that uses cell references, simply use the cell references in place of numbers in your formula.

Example

Let’s say you have a worksheet that contains a range of numbers in column A. You want to find the total of these numbers and display the result in cell A10. Here’s how you would do it:

  1. Select cell A10.
  2. Type =SUM(A1:A9) in the cell.
  3. Press Enter.
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The result of the formula will be displayed in cell A10. If you add or remove numbers from the range A1:A9, the total in cell A10 will automatically update.

How to Create Formulas that Use Absolute Cell References

Absolute cell references are cell references that do not change when the formula is copied to other cells. By default, Excel uses relative cell references, which means that when you copy the formula to a new cell, the cell references in the formula will change based on their new location. Absolute cell references are useful when you want to use a fixed cell reference in a formula.

To create a formula that uses absolute cell references, you need to use the dollar sign ($) in front of the column and row reference of the cell you want to make absolute.

Example

Let’s say you have a worksheet that contains a range of numbers in column A and a tax rate in cell B1. You want to add up the numbers in column A and multiply the result by the tax rate, but you want to use an absolute cell reference for the tax rate so that it does not change when you copy the formula to other cells. Here’s how you would do it:

  1. Select cell C1.
  2. Type =SUM(A1:A10)*$B$1 in the cell.
  3. Press Enter.

The result of the formula will be displayed in cell C1. The dollar signs in front of the column and row reference of cell B1 make it an absolute cell reference, so when you copy the formula to other cells, the tax rate in cell B1 will not change.

How to Create Formulas that Use Relative Cell References

Relative cell references are cell references that change when the formula is copied to other cells. This is the default setting in Excel formulas. When you copy a formula to a new cell, Excel automatically adjusts the cell references in the formula based on the new location of the formula.

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Example

Let’s say you have a worksheet that contains a range of numbers in column A and you want to create a formula to find the average of the first 5 numbers in the range. Here’s how you would do it:

  1. Select cell A6.
  2. Type =AVERAGE(A1:A5) in the cell.
  3. Press Enter.

The result of the formula will be displayed in cell A6. If you copy the formula to cell B6, Excel will automatically adjust the cell references in the formula to =AVERAGE(B1:B5).

FAQ

What is the difference between a formula and a function in Excel?

A formula is a combination of mathematical operators and cell references that performs a calculation in Excel. A function is a pre-built formula that is designed to perform a specific task in Excel, such as finding the average of a set of numbers or counting cells that meet certain criteria.

What is the difference between a relative and absolute cell reference in Excel?

A relative cell reference is a cell reference in a formula that changes when the formula is copied to other cells. An absolute cell reference is a cell reference in a formula that does not change when the formula is copied to other cells. Absolute cell references are useful when you want to use a fixed cell reference in a formula.

Video Tutorial: How to Create Formulas in Excel

Conclusion

In conclusion, Excel is a very powerful tool for analyzing, organizing, and manipulating data. The ability to create and use formulas is one of the most important features of Excel. By using formulas and functions, you can perform complex calculations on large amounts of data with ease. Whether you are a business owner, a professional, or a student, Excel is a valuable tool that can help you save time and increase productivity.