Simple Formula

Introduction

Excel can be used to calculate numerical information. In this lesson, you will learn how to create simple formulas in Excel to add, subtract, multiply, and divide values in a workbook. You’ll also learn the various ways you can use cell references to make working with formulas easier and more efficient.

Simple formulas

A formula is an equation that performs a calculation. Like a calculator, Excel can execute formulas that add, subtract, multiply, and divide.

One of Excel’s most useful features is its ability to calculate using a cell address to represent the value in a cell. This is called using a cell reference.

To maximize the capabilities of Excel, it is important to understand how to create simple formulas and use cell references.

Creating simple formulas

Excel uses standard operators for equations, such as a plus sign for addition (+), minus sign for subtraction (-), asterisk for multiplication (*), forward slash for division (/), and caret (^) for exponents.

The key thing to remember when writing formulas for Excel is that all formulas must begin with an equals sign (=).

To create a simple formula in Excel:

1. Select the cell where the answer will appear (B4, for example).
   
2. Type the equals sign (=).
3. Type in the formula you want Excel to calculate (75/250, for example).
   
4. Press Enter. The formula will be calculated, and the value will be displayed in the cell.
   

Creating formulas with cell references

When a formula contains a cell address, it is called a cell reference. Creating a formula with cell references is useful because you can update data in your worksheet without having to rewrite the values in the formula.

To create a formula using cell references:

1. Select the cell where the answer will appear (B3, for example).
   
2. Type the equals sign (=).
3. Type the cell address that contains the first number in the equation (B1, for example).
   
4. Type the operator you need for your formula. For example, type the addition sign (+).
5. Type the cell address that contains the second number in the equation (B2,for example).
   
6. Press Enter. The formula will be calculated, and the value will be displayed in the cell.
   

If you change a value in either B1 or B2, the total will automatically recalculate.

To create a formula using the point-and-click method:

1. Select the cell where the answer will appear (B4, for example).
   
2. Type the equals sign (=).
3. Click the first cell to be included in the formula (A3, for example).
   
4. Type the operator you need for the formula. For example, type the multiplication sign (*).
5. Click the next cell in the formula (B3, for example).
   
6. Press Enter. The formula will be calculated, and the value will be displayed in the cell.