Master formulas in excel

Overview of formulas in Excel

Get started on how to create formulas and use built-in functions to perform calculations and solve problems.

Important: The calculated results of formulas and some Excel worksheet functions may differ slightly between a Windows PC using x86 or x86-64 architecture and a Windows RT PC using ARM architecture. Learn more about the differences.

Important: In this article we discuss XLOOKUP and VLOOKUP, which are similar. Try using the new XLOOKUP function, an improved version of VLOOKUP that works in any direction and returns exact matches by default, making it easier and more convenient to use than its predecessor.

Create a formula that refers to values in other cells

Select a cell.
Type the equal sign =.

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

See a 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.

Enter a formula that contains a built-in function

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).
Press Enter to get the result.

Download our Formulas tutorial workbook

We’ve put together a Get started with Formulas workbook that you can download. If you’re new to Excel, or even if you have some experience with it, you can walk through Excel’s most common formulas in this tour. With real-world examples and helpful visuals, you’ll be able to Sum, Count, Average, and Vlookup like a pro.

Formulas in-depth

You can browse through the individual sections below to learn more about specific formula elements.

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.

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. An expression or a value resulting from an expression is not a constant. If you use constants in a formula instead of references to cells (for example, =30+70+110), the result changes only if you modify the formula. In general, it’s best to place constants in individual cells where they can be easily changed if needed, then reference those cells in 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. You can use references to use data contained in different parts of a worksheet in one formula or use the value from one cell in several formulas. You can also refer to cells on other sheets in the same workbook, and to other workbooks. References to cells in other workbooks are called links or external references.

The A1 reference style

By default, Excel uses the A1 reference style, which refers to columns with letters (A through XFD, for a total of 16,384 columns) and refers to rows with numbers (1 through 1,048,576). These letters and numbers are called row and column headings. To refer to a cell, enter the column letter followed by the row number. For example, B2 refers to the cell at the intersection of column B and row 2.

To refer to	Use
The cell in column A and row 10	A10
The range of cells in column A and rows 10 through 20	A10:A20
The range of cells in row 15 and columns B through E	B15:E15
All cells in row 5	5:5
All cells in rows 5 through 10	5:10
All cells in column H	H:H
All cells in columns H through J	H:J
The range of cells in columns A through E and rows 10 through 20	A10:E20

Making a reference to a cell or a range of cells on another worksheet in the same workbook

In the following example, the AVERAGE function calculates the average value for the range B1:B10 on the worksheet named Marketing in the same workbook.

1. Refers to the worksheet named Marketing

2. Refers to the range of cells from B1 to B10

3. The exclamation point (!) Separates the worksheet reference from the cell range reference

Note: If the referenced worksheet has spaces or numbers in it, then you need to add apostrophes (‘) before and after the worksheet name, like =’123′!A1 or =’January Revenue’!A1.
The difference between absolute, relative and mixed references
1. Relative references A relative cell reference in a formula, such as A1, is based on the relative position of the cell that contains the formula and the cell the reference refers to. If the position of the cell that contains the formula changes, the reference is changed. If you copy or fill the formula across rows or down columns, the reference automatically adjusts. By default, new formulas use relative references. For example, if you copy or fill a relative reference in cell B2 to cell B3, it automatically adjusts from =A1 to =A2.
  
  Copied formula with relative reference
2. Absolute references An absolute cell reference in a formula, such as $A$1, always refer to a cell in a specific location. If the position of the cell that contains the formula changes, the absolute reference remains the same. If you copy or fill the formula across rows or down columns, the absolute reference does not adjust. By default, new formulas use relative references, so you may need to switch them to absolute references. For example, if you copy or fill an absolute reference in cell B2 to cell B3, it stays the same in both cells: =$A$1.
  
  Copied formula with absolute reference
3. Mixed references A mixed reference has either an absolute column and relative row, or absolute row and relative column. An absolute column reference takes the form $A1, $B1, and so on. An absolute row reference takes the form A$1, B$1, and so on. If the position of the cell that contains the formula changes, the relative reference is changed, and the absolute reference does not change. If you copy or fill the formula across rows or down columns, the relative reference automatically adjusts, and the absolute reference does not adjust. For example, if you copy or fill a mixed reference from cell A2 to B3, it adjusts from =A$1 to =B$1.
  
  Copied formula with mixed reference
The 3-D reference style

Conveniently referencing multiple worksheets If you want to analyze data in the same cell or range of cells on multiple worksheets within a workbook, use a 3-D reference. A 3-D reference includes the cell or range reference, preceded by a range of worksheet names. Excel uses any worksheets stored between the starting and ending names of the reference. For example, =SUM(Sheet2:Sheet13!B5) adds all the values contained in cell B5 on all the worksheets between and including Sheet 2 and Sheet 13.
- You can use 3-D references to refer to cells on other sheets, to define names, and to create formulas by using the following functions: SUM, AVERAGE, AVERAGEA, COUNT, COUNTA, MAX, MAXA, MIN, MINA, PRODUCT, STDEV.P, STDEV.S, STDEVA, STDEVPA, VAR.P, VAR.S, VARA, and VARPA.
- 3-D references cannot be used in array formulas.
- 3-D references cannot be used with the intersection operator (a single space) or in formulas that use implicit intersection.
What occurs when you move, copy, insert, or delete worksheets The following examples explain what happens when you move, copy, insert, or delete worksheets that are included in a 3-D reference. The examples use the formula =SUM(Sheet2:Sheet6!A2:A5) to add cells A2 through A5 on worksheets 2 through 6.
- Insert or copy If you insert or copy sheets between Sheet2 and Sheet6 (the endpoints in this example), Excel includes all values in cells A2 through A5 from the added sheets in the calculations.
- Delete If you delete sheets between Sheet2 and Sheet6, Excel removes their values from the calculation.
- Move If you move sheets from between Sheet2 and Sheet6 to a location outside the referenced sheet range, Excel removes their values from the calculation.
- Move an endpoint If you move Sheet2 or Sheet6 to another location in the same workbook, Excel adjusts the calculation to accommodate the new range of sheets between them.
- Delete an endpoint If you delete Sheet2 or Sheet6, Excel adjusts the calculation to accommodate the range of sheets between them.

The R1C1 reference style

You can also use a reference style where both the rows and the columns on the worksheet are numbered. The R1C1 reference style is useful for computing row and column positions in macros. In the R1C1 style, Excel indicates the location of a cell with an «R» followed by a row number and a «C» followed by a column number.

Reference	Meaning
R[-2]C	A relative reference to the cell two rows up and in the same column
R[2]C[2]	A relative reference to the cell two rows down and two columns to the right
R2C2	An absolute reference to the cell in the second row and in the second column
R[-1]	A relative reference to the entire row above the active cell
R	An absolute reference to the current row

When you record a macro, Excel records some commands by using the R1C1 reference style. For example, if you record a command, such as clicking the AutoSum button to insert a formula that adds a range of cells, Excel records the formula by using R1C1 style, not A1 style, references.

You can turn the R1C1 reference style on or off by setting or clearing the R1C1 reference style check box under the Working with formulas section in the Formulas category of the Options dialog box. To display this dialog box, click the File tab.

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Need more help?

You can always ask an expert in the Excel Tech Community or get support in the Answers community.

The formula after pressing Ctrl + Shift + Enter was in curly brackets. It was automatically inserted into each cell of the selected range.

If you try to change the data in any cell in the «To pay» column, nothing happens. The formula in the array protects range values from changes. A corresponding entry appears on the screen:

To pay.

Consider other examples of using the functions of an Excel array — calculate the total amount of utility payments using a single formula.

Select the cell E9 (opposite the «Total»).
We introduce a formula of the form:
Press the key combination: Ctrl + Shift + Enter. Result:

The formula of the array in this case replaced two simple formulas. This is a shortened version, which contains all the necessary information for solving a complex problem.

Arguments for a function are one-dimensional arrays. The formula looks at each of them individually, performs user-defined operations, and generates a single result.

Consider the syntax:

Working functions with Excel array

Let’s guess that it is planned to increase utility payments in 10% the next month. If we introduce the usual formula for the total is =SUM((C3:C8*D3:D8)+10%), then we are unlikely to get the expected result. We need each argument to increase in 10%. For the program to understand this, we use the function as an array.

Let’s have a look how the «И» «AND» operator works in the array function. We need to find out how much we pay for the water, hot and cold. Function:
The total is 86.46$.

The Sort functions in the array formula. Sort the amounts to be paid in ascending order. For the sorted data list, create a range. Let’s select it (F3:F7). In the formula bar, we enter
Press Ctrl + Shift + Enter.

The transported matrix. There is a special Excel function for working with two-dimensional arrays. The «ТРАНСП» function returns several values at once. It converts a horizontal matrix to a vertical matrix and vice versa. Select the range of cells where the number of rows equals to the number of columns in the table with the original data. And the number of columns equals to the number of rows in the source array. Select range A9:F10. We introduce the formula:
Press Ctrl + Shift + Enter. This results in an «inverted» data set.

Search for the average without taking into account zeros. If we use the standard «AVERAGE» function, we get «0» as a result. And it will be correct. Therefore, we insert an additional condition into the formula:

We get:

A common mistake when working with arrays of functions is NOT to press the code combination «Ctrl + Shift + Enter» (never forget this key combination). This is the most important thing to remember when processing large amounts of information. Correctly entered function performs the most complicated tasks.

Download array formula examples

Источник

Time-saving ways to insert formulas into Excel

Basic Excel Formulas Guide

Mastering the basic Excel formulas is critical for beginners to become highly proficient in financial analysis. Microsoft Excel is considered the industry standard piece of software in data analysis. Microsoft’s spreadsheet program also happens to be one of the most preferred software by investment bankers and financial analysts in data processing, financial modeling, and presentation.

This guide will provide an overview and list of some basic Excel functions.

Once you’ve mastered this list, move on to CFI’s advanced Excel formulas guide!

Basic Terms in Excel

There are two basic ways to perform calculations in Excel: Formulas and Functions.

1. Formulas

In Excel, a formula is an expression that operates on values in a range of cells or a cell. For example, =A1+A2+A3, which finds the sum of the range of values from cell A1 to cell A3.

2. Functions

Functions are predefined formulas in Excel. They eliminate laborious manual entry of formulas while giving them human-friendly names. For example: =SUM(A1:A3). The function sums all the values from A1 to A3.

Key Highlights

Excel is still the industry benchmark for financial analysis and modeling across almost all corporate finance functions. This course is designed to highlight some of the most important basic Excel formulas.
Mastering these will help a learner build confidence in Excel and move on to more difficult functions and formulas.
There are also several different ways to enter a function in Excel, as shown below.

Five Time-saving Ways to Insert Data into Excel

When analyzing data, there are five common ways of inserting basic Excel formulas. Each strategy comes with its own advantages. Therefore, before diving further into the main formulas, we’ll clarify those methods, so you can create your preferred workflow earlier on.

1. Simple insertion: Typing a formula inside the cell

Typing a formula in a cell or the formula bar is the most straightforward method of inserting basic Excel formulas. The process usually starts by typing an equal sign, followed by the name of an Excel function.

Excel is quite intelligent in that when you start typing the name of the function, a pop-up function hint will show (see below). It’s from this list you’ll select your preference. However, don’t press the Enter key after making your selection. Instead, press the Tab key and Excel will automatically fill in the function name.

2. Using Insert Function Option from Formulas Tab

If you want full control of your function’s insertion, using the Excel Insert Function dialogue box is all you ever need. To achieve this, go to the Formulas tab and select the first menu labeled Insert Function. The dialogue box will contain all the functions you need to complete your financial analysis.

3. Selecting a Formula from One of the Groups in Formula Tab

This option is for those who want to delve into their favorite functions quickly. To find this menu, navigate to the Formulas tab and select your preferred group. Click to show a sub-menu filled with a list of functions.

From there, you can select your preference. However, if you find your preferred group is not on the tab, click on the More Functions option – it’s probably just hidden there.

4. Using AutoSum Option

For quick and everyday tasks, the AutoSum function is your go-to option. Navigate to the Formulas tab and click the AutoSum option. Then click the caret to show other hidden formulas. This option is also available in the Home tab.

5. Quick Insert: Use Recently Used Tabs

If you find re-typing your most recent formula a monotonous task, then use the Recently Used selection. It’s on the Formulas tab, a third menu option just next to AutoSum.

Free Excel Formulas YouTube Tutorial

Watch CFI’s FREE video tutorial to quickly learn the most important Excel formulas. By watching the video demonstration you’ll quickly learn the most important formulas and functions.

Seven Basic Excel Formulas For Your Workflow

Since you’re now able to insert your preferred formulas and function correctly, let’s check some fundamental Excel functions to get you started.

1. SUM

The SUM function is the first must-know formula in Excel. It usually aggregates values from a selection of columns or rows from your selected range.

=SUM(number1, [number2], …)

Example:

=SUM(B2:G2) – A simple selection that sums the values of a row.

=SUM(A2:A8) – A simple selection that sums the values of a column.

=SUM(A2:A7, A9, A12:A15) – A sophisticated collection that sums values from range A2 to A7, skips A8, adds A9, jumps A10 and A11, then finally adds from A12 to A15.

=SUM(A2:A8)/20 – Shows you can also turn your function into a formula.

2. AVERAGE

The AVERAGE function should remind you of simple averages of data, such as the average number of shareholders in a given shareholding pool.

=AVERAGE(number1, [number2], …)

Example:

=AVERAGE(B2:B11) – Shows a simple average, also similar to (SUM(B2:B11)/10)

3. COUNT

The COUNT function counts all cells in a given range that contain only numeric values.

=COUNT(value1, [value2], …)

Example:

COUNT(A:A) – Counts all values that are numerical in A column. However, you must adjust the range inside the formula to count rows.

COUNT(A1:C1) – Now it can count rows.

4. COUNTA

Like the COUNT function, COUNTA counts all cells in a given rage. However, it counts all cells regardless of type. That is, unlike COUNT that only counts numerics, it also counts dates, times, strings, logical values, errors, empty string, or text.

=COUNTA(value1, [value2], …)

Example:

COUNTA(C2:C13) – Counts rows 2 to 13 in column C regardless of type. However, like COUNT, you can’t use the same formula to count rows. You must make an adjustment to the selection inside the brackets – for example, COUNTA(C2:H2) will count columns C to H

5. IF

The IF function is often used when you want to sort your data according to a given logic. The best part of the IF formula is that you can embed formulas and functions in it.

=IF(logical_test, [value_if_true], [value_if_false])

Example:

=IF(C2<D3,“TRUE”,”FALSE”) – Checks if the value at C3 is less than the value at D3. If the logic is true, let the cell value be TRUE, otherwise, FALSE

=IF(SUM(C1:C10) > SUM(D1:D10), SUM(C1:C10), SUM(D1:D10)) – An example of a complex IF statement. First, it sums C1 to C10 and D1 to D10, then it compares the sum. If the sum of C1 to C10 is greater than the sum of D1 to D10, then it makes the value of a cell equal to the sum of C1 to C10.

6. TRIM

The TRIM function makes sure your functions do not return errors due to extra spaces in your data. It ensures that all empty spaces are eliminated. Unlike other functions that can operate on a range of cells, TRIM only operates on a single cell. Therefore, it comes with the downside of adding duplicated data to your spreadsheet.

=TRIM(text)

Example:

TRIM(A2) – Removes empty spaces in the value in cell A2.

7. MAX & MIN

The MAX and MIN functions help in finding the maximum number and the minimum number in a range of values.

=MIN(number1, [number2], …)

Example:

=MIN(B2:C11) – Finds the minimum number between column B from B2 and column C from C2 to row 11 in both columns B and C.

=MAX(number1, [number2], …)

Example:

=MAX(B2:C11) – Similarly, it finds the maximum number between column B from B2 and column C from C2 to row 11 in both columns B and C.

More Resources

Thank you for reading CFI’s guide to basic Excel formulas. To continue your development as a world-class financial analyst, these additional CFI resources will be helpful:

Advanced Excel Formulas
Benefits of Excel Shortcuts
Valuation Modeling in Excel
See all Excel resources

Источник

Overview of formulas in Excel

Create a formula that refers to values in other cells

See a formula

Enter a formula that contains a built-in function

Download our Formulas tutorial workbook

Formulas in-depth

Need more help?

See Also

Need more help?

Want more options?

Table of contents

#1 Create Formula Flexible with Cell References

#2 Use SUM Function to Add Up Numbers

#3 Create Formula References to Other Cells Excel

Recommended Articles

Types of Excel functions

Array formulas syntax

Working functions with Excel array

Basic Excel Formulas Guide

Basic Terms in Excel

1. Formulas

2. Functions

Key Highlights

Five Time-saving Ways to Insert Data into Excel

1. Simple insertion: Typing a formula inside the cell

2. Using Insert Function Option from Formulas Tab

3. Selecting a Formula from One of the Groups in Formula Tab

4. Using AutoSum Option

5. Quick Insert: Use Recently Used Tabs

Free Excel Formulas YouTube Tutorial

Seven Basic Excel Formulas For Your Workflow

1. SUM

2. AVERAGE

3. COUNT

4. COUNTA

5. IF

6. TRIM

7. MAX & MIN

More Resources