Excel formulas are essential for unlocking the full potential of the program. If you’re new to Excel and curious about what formulas are and how they work, here’s everything you need to know.

What Are Excel Formulas?

Excel formulas are like little instructions you give to Excel to do calculations or manipulate data within your spreadsheet. you may use them for basic tasks, such as adding or subtracting numbers, or for more complex operations, like calculating averages or searching for specific information.

A basic formula might look like this:=A2+B2. This basically tells Excel to add the number in cellA2to the number in cellB2, and then show the result in the cell where you typed the formula.

Formula in Excel Spreadsheet

For more advanced calculations, you canuse Excel functions. Think of them as ready-made formulas you can use without having to figure everything out yourself. For example, instead of adding several numbers one by one, which can take a while, you can use the=SUM(A2:A6)function. This tells Excel to add all the numbers from cellsA2toA6in one simple step.

How Do Excel Formulas Work?

Every Excel formula starts with an equal sign (=). This is like telling Excel, “Hey, we’re about to do some math!” After that, you can use cell references (likeA1orB1) or even just numbers to create your formula. You can combine these with operators like+,-,*, and/to perform simple math or use functions for more advanced tasks.

Excel instantly calculates the result once you write the formula and pressEnter. Even better, if any numbers in the cells you used change, Excel automatically updates the formula result—so you don’t have to do it yourself.

A simple example of the #NAME? error in Microsoft Excel. Here, in attempting to call the AVERAGE function, the function name is misspelled. The first “E” is missing from “AVERAGE”, and so the function is not recognized.

The good thing is, if you make a mistake in your formula, Excel won’t leave you guessing. It will give you an error message like#DIV/0!(which means you tried dividing by zero) or#VALUE!(when there’s an issue with your data). These errors will help youtroubleshoot issues within the formulas.

How to Enter, Edit, or Delete Formulas in Excel

Using formulas in Excel is pretty simple. To get started, click on the cell where you want the result to appear, type an equal sign (=), then enter your formula (like=A1+B1), and pressEnter. Excel will instantly calculate and display the result in that cell.

If you want to use the same formula in other cells, there’s a quick trick: just drag the small square in the bottom-right corner of the cell (called thefill handle) across the other cells, and Excel will copy the formula for you.

Entering a Formula in Excel

Editing a formula is also easy—just click on the cell, make changes directly in the formula bar at the top of the screen, and pressEnterto save your changes. you’re able to also double-click the cell itself to edit the formula directly.

To delete a formula, select the cell and hitDeleteon your keyboard. If you want to keep the value generated by the formula but remove the formula itself, select the cell and pressCtrl + Cto copy it first. Then, right-click the same cell and choose thePaste Valuesicon or pressVon your keyboard.

Paste Values in Excel-1

Excel formulas not only save time and minimize errors but also streamline complex data analysis tasks. Now that you understand how formulas work, you can start using them in your spreadsheet to automate repetitive calculations, derive insights from raw information, and evensolve real-life problems.