Excel Formula Basics

Writing a spreadsheet formula is different from writing an equation in math class.

Excel formulas look like=3+2instead of3 + 2 =.

The formula is still there, but it doesn’t appear in your spreadsheet.

MS Excel with formula and result displayed

Lifewire / Maddy Price

Improve Formulas with Cell References

Excel formulas can also be developed usingcell references.

Here’s a real-life example of how this approach can be useful.

Say you lead a team of salespeople and are tracking their monthly and quarterly sales.

Person using Sheets on a computer

Lifewire / Maddy Price

You want to calculate their total sales for the year.

Using Cell References

Each cell in Excel is part of a row and a column.

Rows are designated with numbers (1, 2, 3, etc.)

MS Excel with new formula displayed

shown along the top.

They refer to the quarterly sales numbers for the salesperson named Jean.

Theformula adds those numberstogether to come up with the annual sales number.

MS Excel spreadsheet with cell C1 selected

Create a Formula With Cell References

Try creating a simple formula using cell references.

First, you must populate the spreadsheet with data.

Open a new Excel file and select cellC1to make it the active cell.

MS Excel spreadsheet with one cell populated with data

Type3in the cell, then pressEnteron your keyboard.

If it’s not, select cellC2.

Type2in the cell and pressEnteron your keyboard.

MS Excel spreadsheet with two cells populated with data

Now create the formula.

Select cellD1and punch in=C1+C2.

Notice that when you jot down each cell reference, that cell becomes highlighted.

MS Excel spreadsheet with two cells populated with data and formula typed into a third cell

PressEnterto complete the formula.

The answer5appears in cellD1.

If you select cellD1again, the complete formula=C1+C2appears in the formula bar above the worksheet.

MS Excel spreadsheet with some cells populated

Use your pointer to select cellC1to enter the cell reference in the formula.

PressEnterto complete the formula.

The result appears in cellE1.

MS Excel spreadsheet with some cells populated

Notice that the results in cellsD1andE1both change from5to8, though the formulas remain unchanged.

An easy way to remember the order of operations is to use the acronym BEDMAS.

Excel actually considers division and multiplication to be of equal importance.

MS Excel spreadsheet with a formula in progress

It performs these operations in the order in which they occur, from left to right.

The same is true for addition andsubtraction.

Here’s a simple example of the order of operations in use.

MS Excel spreadsheet with formula in progress

It then performs the multiplication operation,2*5, with the result of10.

Try entering the formula into Excel to see it work.

Enter a Complex Formula

Now let’s create a more complex formula.

MS Excel spreadsheet with several cells populated

Select cellC2to enter the cell reference in the formula, then throw in the minus sign (-).

Select cellC4to enter this cell reference into the formula, then key in a right bracket ()).

pop in the multiplication sign (*), then select cellC1to enter this cell reference into the formula.

MS Excel spreadsheet with some cells populated

jot down the plus sign (+), then selectC3to enter this cell reference into the formula.

punch in the division sign (/), then selectC5to enter this cell reference into the formula.

PressEnterto complete the formula.

MS Excel spreadsheet with some cells populated with data

The answer-4appears in cellD1.

MS Excel spreadsheet with formula in progress

MS Excel spreadsheet with formula in progress

MS Excel spreadsheet with formula in progress

MS Excel spreadsheet with formula in progress

MS Excel with formula in progress

MS Excel spreadsheet with formula in progress

MS Excel spreadsheet with some cells populated