Microsoft Excel formulas - the basics
In MS Excel, formulas are equations that perform
various calculations in your worksheets. Though Microsoft has introduced a
handful of new functions over the years, the concept of Excel spreadsheet
formulas is the same in all versions of Excel 2016, Excel 2013, Excel 2010,
Excel 2007 and lower.
·
All Excel formulas begin
with an equal sign (=).
·
After the equal symbol,
you enter either a calculation or function.
For example, to add up values in cells B1 through B5, you can either:
o Type the entire equation: =B1+B2+B3+B4+B5
o Use the SUM function: =SUM(B1:B5)
·
Using the colon (:) in
Excel formulas allows you to supply a range of cells for the formula. In the above formula example, range B1:B5
includes five cells, B1 through B5.
Elements of Microsoft Excel formulas
When you make a formula in Excel, you can use
different elements to supply the source data to the formula and indicate what
operators should be performed on those data. Depending on the formula type that
you create, it can include any or all of the following parts:
·
Constants - numbers or text values that
you enter directly in a formula, like =2*3.
·
Cell references - reference to a cell
containing the value you want to use in your Excel formula, e.g. =SUM(B1:B5).
·
Names - defined name for a cell range,
constant, table, or function, for example =SUM(my_name).
·
Functions - predefined formulas in Excel
that perform calculations using the values supplied in their arguments.
·
Operators - special symbols that specify
the type of operation or calculation to be performed.
Operators in Excel
worksheet formulas
To tell Microsoft Excel what type of operation
you want to perform in a formula, you use special symbols that are technically
called operators. There exist 4 types of operators in Excel:
·
Arithmetic - to perform basic
mathematical operations.
·
Reference - to make rages and separate
arguments in Excel functions.
Using arithmetic
operators in Excel formulas
These operators are used to perform basic
mathematical operations such as addition, subtraction, multiplication, and
division.
Operator
|
Meaning
|
Formula example
|
+ (plus sign)
|
Addition
|
=A2+B2
|
- (minus sign)
|
Subtraction
Negation (reversing the sign)
|
=A2-B2
=-A2 (changes the sign of the value in A2)
|
* (asterisk)
|
Multiplication
|
=A2*B2
|
/ (forward slash)
|
Division
|
=A2/B2
|
% (percent sign)
|
Percentage
|
=A2*10%
(returns 10% of the value in A2)
|
^ (caret)
|
Exponential (power of)
|
=A2^3
(raises the number in A2 to the power of 3)
|
For example, if you have an item price in cell
A2 and VAT in cell B2, you can calculate the VAT amount by using the following
percentage formula: =A2*B2

Comparison operators in
Excel formulas
In Microsoft Excel formulas, comparison,
or logical, operators are used to compare two
values. The result of the comparison is always a logical value of TRUE or
FALSE. The following logical operators are available in Excel:
Comparison operator
|
Meaning
|
Formula example
|
=
|
Equal to
|
=A2=B2
|
<>
|
Not equal to
|
=A2<>B2
|
>
|
Greater than
|
=A2>B2
|
<
|
Less than
|
=A2<B2
|
>=
|
Greater than or equal to
|
=A2>=B2
|
<=
|
Less than or equal to
|
=A2<=B2
|
For example, formula =A1=B1 returns TRUE if
cells A1 and B1 contain the same value (number, text or date), FALSE otherwise.
Text concatenation
operator
Text concatenation operator in Excel is the
ampersand symbol (&). You can use it to join two or more text
strings in a single string.
For example, if you have country codes in column
A and telephone numbers in column B, you can use the following formula to get
the telephone numbers combined with the country codes:
=A1&" "&B1
In the above formula, we concatenate a space
" " in between to make the numbers better readable:

Reference operators in
Excel formulas and functions
To supply rages to MS Excel formulas and
separate arguments in Excel functions, the following operators are used.
Colon (:) - it is a range operator that
allows you to make one reference for multiple cells located between 2 cells
that you specify.
For example, range A1:A00 includes 100 cells
from A1 through A100. To find an average of those 100 cells, you use the
following formula: =AVERAGE(A1:A00)
You can also refer to the entire column (A:A) or the entire row (1:1). For example, the following formula finds the total of
all numbers in column A: =SUM(A:A). Find more about whole-column and whole-row references.
Comma (,) - is used to separate arguments in Excel
spreadsheet formulas. For example, the formula =IF(A1>0, "good", "bad") reads as follows: if A1 is greater than
zero, return "good", otherwise "bad".
Note. Comma is the default List
Separator in North America and some other countries. In European
countries, comma is reserved as the Decimal Symbol and the List
Separator is usually set to semicolon (;). In this case, you need to
separate a function's arguments with semicolons, e.g. =IF(A1>0; "good"; "bad").
So, if you are trying to make a formula in your
worksheet, but Excel does not accept it and throws up an "invalid
formula" error, go to your Regional Settings (Control Panel > Region
and Language > Additional Settings) and check what
symbol is set as List Separator there. It is that symbol that you need to
use to separate arguments in your Excel formulas.
Space - it is an intersection operator that lets you get the
cell(s) common to the two references that you specify. For example, if you a
list of items in column A and some related data in other columns, you can get a
value at the
intersection of a given column and row by using a formula like this: =B3:D3 C2:C4

Excel formula types
Formulas that you create in your Excel
spreadsheets can be simple or complex:
·
Simple Excel formulas perform just one
mathematical operation, for example =10*5 or =SUM(A1:A10)
·
Complex (advanced) Excel formulas include more
than one calculation, for example =10*5+20or =SUM(A1:A10)/2
Further on in this tutorial, you will find the
detailed steps for making both types of Excel spreadsheet formulas.
How to create formulas
in Excel
As already mentioned, any Excel formula starts
with the equal sign (=). So, whatever formula you are going to write, begin by
typing = either in the destination cell or in the Excel formula bar. And now,
let's have a closer look at how you can make different formulas in Excel.
How
to create simple formulas in Excel
Although simple Excel formulas perform just one
calculation, they can do this in many different ways. You can supply the source
data as constants, cell references, or defined names, and perform calculations
by using mathematical operators or Excel functions. For detailed steps, please
see the following resources:
How
to create advanced formulas in Excel
When you have some experience with simple Excel
formulas, you may want to perform several calculations within a single formula.
And the following examples show how you can do this.
Creating complex formulas with constants and
mathematic operators
For a complex Excel formula to calculate
correctly, certain operations must be performed before others. The default
order of operations in Excel formulas is this:
·
Mathematical operations
enclosed in parenthesis
·
Power of (exponential
calculations)
·
Multiplication and
division, whichever comes first in a formula
·
Addition and
subtraction, whichever comes first in a formula
For example, you can use the following formulas
to calculate the total and commission:

And now, let's break down these formulas to see
how Microsoft Excel calculates them:
Total formula: =$B2*$D2+$B2*$D2*$C2
·
1st multiplication:
$B2*$D2 (price*qty. = amount)
·
2nd and
3rd multiplications: $B2*$D2*$C2 (price*qty.*VAT % = VAT
amount)
·
Addition: amount + VAT
amount = total
Commission formula: =($B2*$D2+$B2*$D2*$C2)*10%
To calculate the 10% commission, you need to
multiply the total by 10%, so you enclose the previous calculation in brackets,
and got the result you want.
Of course, nothing prevents you from multiplying
the total already calculated in column E by 10%, in this case the formula would
reduce to a simple calculation =E2*10%. However, in large worksheets, it makes sense
to write independently calculated formulas, so that removing a column with one
formula wouldn't break the others.
Excel formulas with nested functions
In Microsoft Excel formulas, nesting one function within another means using one function as an
argument of another function. In modern versions of Excel 2016, 2013, 2010 and
2010, you can use up to 64 nested functions. In older versions of Excel 2003
and lower, only up to 7 levels of functions are allowed.
Here is a very simple example of a nested Excel
formula that includes the SUM function to find the total, and ROUND function to round that number to
the nearest integer (0 decimal places):
=ROUND(SUM(B2:B6),0)

Of all Excel functions, IF is nested more often
than all others. As you probably know, the IF function is used to evaluate a
specified condition and return one value when condition is met, and another
value when the condition is not met. However, quote often you have to deal with
situations where there are more than two possible outcomes. And if this case,
you can write several IF functions and nest them into each other:

Array formulas in Excel
Array formulas in Excel are advanced aerobatics.
A single Excel array formula can perform thousands of calculations and replace
hundreds of usual formulas. Learning array formulas certainly requires some
time and effort, but it's worth it.
Since this tutorial is purposed for beginners, I
won't intimidate you by the definitions of array constants and complex
multi-line formulas. I'll show just one very simple example of an Excel
array formula that demonstrates what they are capable for.
Supposing you have 2 columns of numbers, column
A and B. And you want to know how many times column B is greater than or equal
to column A when a value in column B is greater than 0.
This task requires comparing two ranges and you
can do this by using the following array formula:
=SUM((B2:B10>=A2:A10) * (B2:B10>0))

Note. To enter an Excel array formula correctly, you have to
press Ctrl+Shift+Enter instead
of conventional Enter stroke.
To learn more about Excel array formulas, please
see the following tutorials:
Excel user defined functions
Although Microsoft Excel has hundreds of built
in functions, you still may find yourself faced with a challenge for which no
predefined Excel function exists. In this case, you can create that function
yourself... or have somebody create it for you :)
Such custom functions are called User Defined Functions (UDFs), and they are especially useful for
advanced mathematic or engineering calculations. Like macros, user defined
functions are written in VBA (Visual Basic for Applications). As an example,
you can review and download custom functions created by our team to count and sum cells by color.
Absolute, relative and
mixed cell references in Excel formulas
There exist 3 types of cell references in Excel:
absolute ($A$1), relative (A1) and mixed ($A1 or A$1). All three of the above
references refer to the same cell, and the dollar sign ($) is used only for one
purpose - it tells Microsoft Excel whether to change or not to change
cell references when the formula is moved or copied to other cells.
Absolute cell reference ($A$1) - the $ sign before the row and
column coordinates makes a reference static, and lets you copy a formula without changing references.
Relative cell reference (A1) - a cell reference with no $ sign
changes based on relative position of rows and columns in a spreadsheet.
Mixed cell reference - can be of 2 types:
·
Absolute
column and relative row ($A1)
- the $ sign in front of the column letter locks the reference to the specified
column, so the column never changes. The relative row reference, without the
dollar sign, changes depending on the row to which the formula is copied.
·
Relative
column and absolute row (A$1)
- the row's reference locked by $ doesn't change, and the column's reference
does.
The following image shows how different
reference types work in practice.

Tips and time-saving shortcuts for Excel formulas
Formulas in Excel are a powerful multi-faceted
tool, and they can solve a great variety of tasks in your spreadsheets. Of
course, learning various aspects of Microsoft Excel formulas and functions does
take time, so you might feel there isn't enough time in the day to learn
everything. Well, a good way to find more time is to save some time :)
·
To view all formulas on the sheet, click the Show formulas button on the Formulas tab
> Formula Auditing group or press the Ctrl+~ shortcut.
·
To edit a formula, press F2,
or double click a cell, or click the formula bar.
·
To debug formulas in Excel, select a formula part and press F9. This will let you see the actual values
behind cell references.
·
To copy a formula to all cells in a column, enter the formula in the first cell, select that cell, and hover
the cursor over the small square in bottom right corner until it changes to a
black cross (which is called
the fill handle). Double click that cross, and you will get the formula copied
through the entire column.
·
To convert formulas to values, select all cells with formulas that you want
to convert, press Ctrl+C to
copy those formulas, then press Shift+F10,
then press V, and then hit Enter. Shift + F10 + V is the shortcut for
Excel's Paste special - values only. If you are not sure you will
remember this shortcut, then simply press a usual shortcut for paste Ctrl+V, click the small arrow to the right of
the Paste button to open the drop-down list, and select Paste
Values. For more information, see How to replace formulas with their values in Excel.
Microsoft
Excel formulas with examples
Excel provides formulas for almost anything, and
there exist tens or even hundreds of different functions in modern versions of
Microsoft Excel. So, if you encounter a task for which you cannot work out a
solution, most likely you are missing out on a formula that can do it for you.
Before spending hours and hours on performing manual calculations, take a few
minutes to review the following resources. It is a selection of the most
popular MS Excel formulas with examples, grouped by categories.
Excel percentage formula
·
How to calculate percentage in Excel - a
few examples of percentage formula for Excel such as calculating percentage of
total, calculating percent change (percentage increase formula), formula to
calculate amount and total by percentage, and more.
Excel sum formulas
Count formula in Excel
·
COUNTIF formula in Excel - formula
examples to conditionally count cells based on exact and partial match, count
duplicates and unique values, and more.
Average formula in Excel
Excel date formulas
·
Excel DATE formula examples - how to get
a serial number representing a date, add and subtract dates in Excel, return a
date based on values in other cells, convert a text string to a date, plus a
few advanced Excel DATE formula examples.
Time formulas in Excel
Excel formulas for VLOOKUP
·
Excel VLOOKUP tutorial for beginners -
explains the basics of Excel's VLOOKUP function and provides a number of
formula examples to do vlookup from another worksheet and a different workbook,
VLOOKUP formula with wildcard characters, vlookup with exact and approximate
match, etc.
Excel conditional formatting formulas