Overview of formulas and functions in Excel

Formula

Formula is a combination of cell references and operators. We can create a formula for any mathematical calculation.

Function is a set of codes created to execute calculations. Function can be categorized for various situations. Excel contains so many built in functions.

We can create a formula that contains a built-in function.

    

To see a formula

1. 

1. 

Enter a formula that contains a built-in function

1. Select a cell.
2. Type the equal sign =.
   Note: Formulas in Excel always begin with the equal sign.
3. Select a cell or type its address in the selected cell.
   
4. Enter an operator. For example, – for subtraction.
5. Select the next cell, or type its address in the selected cell.
   
6. Press Enter. The result of the calculation appears in the cell with the formula.

• When a formula is entered into a cell, it also appears in the Formula bar.
• To see a formula, select a cell, and it will appear in the formula bar.
• Select an empty cell.
• Type an equal sign = and then type a function. For example, =SUM for getting the total sales.
• Type an opening parenthesis (.
• Select the range of cells, and then type a closing parenthesis).

1. Press Enter to get the result.

The parts of an Excel formula

A formula can also contain any or all of the following: functions, references, operators, and constants.

Parts of a formula   

1. Functions: The PI() function returns the value of pi: 3.142...

2. References: A2 returns the value in cell A2.

3. Constants: Numbers or text values entered directly into a formula, such as 2.

4. Operators: The ^ (caret) operator raises a number to a power, and the * (asterisk) operator multiplies numbers.

Constants in Excel formulas

A constant is a value that is not calculated; it always stays the same. For example, the date 10/9/2008, the number 210, and the text "Quarterly Earnings" are all constants

References in Excel formulas

A reference identifies a cell or a range of cells on a worksheet, and tells Excel where to look for the values or data you want to use in a formula.

 References to cells in other workbooks are called links or external references.

x