Referencing absolute cells in excel

A absolute reference is excel is a cell reference wherein the column and row coordinates remain fixed on copying a formula from one cell to the other. To fix the coordinates, a dollar sign ($) is placed before them. For example, $D$2 is an absolute reference that refers to cell D2. Shortcut to Absolute Reference in excel is the key F4

The purpose of making the cell reference absolute is to keep it static irrespective of whether the formula is copied to a different worksheet or workbook. By default, a cell reference in Excel is relative (like D2), implying that it changes when the formula is copied.

Apart from absolute and relative, a cell reference can also be mixed. In a mixed reference, either the column label or the row number is kept constant (like $D2 or D$2).

Absolute Reference in Excel Shortcut

The shortcut to absolute reference in excel is F4. With a single keystroke, the F4 key on your keyboard allows you to add both dollar signs.

How to Use Absolute References in Excel?

While working in Excel, it is essential to know whether a cell reference should stay absolute, relative referenceIn Excel, relative references are a type of cell reference that changes when the same formula is copied to different cells or worksheets. Let’s say we have =B1+C1 in cell A1, and we copy this formula to cell B2 and it becomes C2+D2.read more or mixedA mixed reference is a type of cell reference that differs from absolute and relative cell reference. In the mixed cell reference, we only refer to the column of the cell or the row of the cell.read more. This helps one to carry out the calculations as desired.

With this article, we will focus on absolute references of Excel. Let us consider some examples to understand the working of these references in Excel.

You can download this Absolute Reference Excel Template here – Absolute Reference Excel Template

Example #1–Multiplication Formula Using Absolute and Relative References

The following image shows the rates (in USD in column B) of different rooms of a hotel. We want to convert each amount from USD to INR (in column C).

Assume that 1 USD is equal to Rs. 72.5. This USD to INR conversion rate is given in cell C2. Use absolute and relative references in the multiplication excel formula. Explain the cell references used for the given task.

Explanation of the cell references: In the formulas of column C, the first cell reference is relative (B5, B6, and B7), while the second cell reference is absolute ($C$2). The reason is that on copying the formula from cell C5 to C7, we wanted the first reference to change and the second reference to stay constant.

As a result, B5 (in cell C5) changes to B6 (in cell C6) and further changes to B7 (in cell B7). However, the reference $C$2 stays the same in cells C5, C6, and C7. So, the aim is to multiply the different amounts of column B with the same conversion rate of cell C2.

Example #2–SUMIFS Formula Using Absolute and Mixed References

The following image shows the sales revenue generated (in $ in column C) in three months (column B) by five sales managers (in column A) of an organization. The three months are January, February, and March. The five sales managers are John, Shub, Kavish, Raj, and Sanju.

Since some sales managers have made multiple sales in a month, their names appear more than once against a single month. Sum the sales revenues generated by each manager in a particular month. Use the SUMIFS function of Excel.

Further, use the following types of cell references for the given task:

• For “sum_range,” “criteria_range1,” and “criteria_range2,” use absolute excel references.
• For “criteria1” and “criteria2,” use mixed references.

Explain the formula and the cell references used.

The steps to perform the given task by using the SUMIFS functionSUMIFS is an enhanced version of the SUMIF formula in Excel that enables you to sum any range of data by matching several criteria. read more and the stated references are listed as follows:

Step 1: Write the names of the five managers in the range E2:E6. Enter the names of the three months in the range F1 to H1. All these names (shown in the following image) will be used in the SUMIFS formula one at a time.

Step 2: Enter the following formula in cell F2.

“=SUMIFS($C$2:$C$17,$A$2:$A$17,$E2,$B$2:$B$17,F$1)”

This is shown in the succeeding image.

Note: Please ignore the figures of cells G2 and H2 at this step.

Step 3: Drag the formula of cell F2 horizontally (till cell H2) and vertically (till cell F6). Likewise, drag the formula of cells F3, F4, F5, and F6 horizontally till cells H3, H4, H5, and H6 respectively.

The outputs of all the SUMIFS formulas are shown in the range F2:H6 of the following image. Hence, the sales revenue generated by all the managers in the given months (January, February, and March) has been obtained.

Notice that the cells containing a hyphen (F6, G5, and H4) imply that a sale has not been made in that month by the respective manager.

Explanation of the formula and the cell references: The formula of step 1 works as follows:

1. The “sum_range” supplied to the SUMIFS function is $C$2:$C$17. The numbers of this range are summed subject to the conditions (or criteria) entered in the formula. We have used absolute cell references in the “sum_range.” This is because we do not want the references to change as the formula is copied to the remaining cells of the range F2:H6.
2. The “criteria_range1” supplied to the SUMIFS function is $A$2:$A$17. This range is evaluated for “criteria1.” We have again used absolute excel references in “criteria_range1.” The reason is that the “criteria_range1” stays the same across all the SUMIFS formulas of the range F2:H6.
3. The “criteria1” supplied to the SUMIFS function is $E2. Since cell E2 contains the name “John,” the SUMIFS function checks the range A2:A17 for this name. We have used a mixed reference ($E2) for “criteria1” because we want its column label (E) to be fixed and the row number (2) to be variable. This enables the SUMIFS function to check the range A2:A17 for the values of cells E2, E3, E4, E5, and E6. So, each cell of column E (rows 2 to 6) serves as “criteria 1” in the different SUMIFS formulas of the range F2:H6.
4. The “criteria_range2” supplied to the SUMIFS function is $B$2:$B$17. This range is evaluated for “criteria2.” We have used absolute references in this range because we want the same range (B2:B17) to be evaluated each time for “criteria2.”
5. The “criteria2” supplied to the SUMIFS function is F$1. Cell F1 contains the value “Jan.” So, the SUMIFS function checks the range B2:B17 for the value “Jan.” We have used a mixed reference (F$1) for “criteria2.” This is because we want the SUMIFS function to check the range B2:B17 for the values of cells F1, G1, and H1. Thus, the column label changes from F to G and finally to H, while the row number stays constant at 1.

The SUMIFS formula of step 1 checks for two conditions (criteria) “John” and “Jan” in the ranges A2:A17 and B2:B17 respectively. Further, those values of the range C2:C17 are summed that satisfy both these conditions. So, only the number 56,928 satisfies both these conditions. Hence, the output is 56,928.

In the same way, the SUMIFS formulas of the remaining range F2:H6 work.

Note: The SUMIFS function sums those values that satisfy multiple criteria. For the syntax of the SUMIFS function, click the hyperlink given before step 1 of this example.

The important points related to cell references of Excel are listed as follows:

• In an absolute reference in excel, both the column label and the row number are fixed by placing a dollar sign ($) before them. So, an absolute reference has an absolute column and an absolute row.
• In a relative reference, both the column label and the row number are variable. The dollar sign ($) is omitted in a relative reference. So, a relative reference has a relative column and a relative row.
• In a mixed reference, either the column label or the row number is fixed, while the other is variable. The dollar sign ($) is placed before the constant part of a mixed reference. So, a mixed reference has either a relative column and an absolute row or an absolute column and a relative row.
• The absolute references in excel do not change irrespective of an upward, downward, leftward or rightward movement of the formula containing them.
• The cell references change each time the F4 key is pressed. They change as follows:
  • Pressing the F4 key once changes the cell reference from relative to absolute (like D2 changes to $D$2).
  • Pressing the F4 key twice changes the cell reference from absolute to mixed (like $D$2 changes to D$2). The column label of the mixed reference becomes variable, while the row number stays fixed.
  • Pressing the F4 key thrice changes the cell reference from mixed to mixed again (like D$2 changes to $D2). The column label of the mixed reference becomes fixed, while the row number stays variable.
  • Pressing the F4 key four times changes the cell reference from mixed to relative again (like $D2 changes to D2).

Note: The steps to change a cell reference within a formula are listed as follows:

1. Double-click the cell containing the formula.
2. Select the cell reference to be changed.
3. Press the F4 key the required number of times.
4. Complete the formula in the usual way once the cell reference has been changed. So, press either the “Enter” or the “Ctrl+Shift+Enter” keys depending on whether it is a regular or an array formula.

To exit the Edit mode without changing the formula, press the escape (Esc) key.

Frequently Asked Questions

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Absolute Reference in Excel (Table of Contents)

• Absolute Cell Reference in Excel
• How to Create Absolute Cell Reference in Excel?
• How to Use Absolute Cell Reference in Excel?

Introduction to Absolute Cell Reference in Excel

Absolute reference in excel is used when we want to fix the position of the selected cell in any formula so that its value will be not changed whenever we are changing the cell or copying the formula to other cells or sheets. This is done by putting the dollar (“$”) sign before and after the column name of the selected cell. Or else, we can type the F4 function key, which will automatically cover the column alphabet with the dollar. For example, if you want to fix cell A1, then it will look as “=$A$1”.

Uses of Absolute Cell Reference in Excel

The absolute cell reference in excel is a cell address that contains a dollar sign ($). It can precede the column reference, the row reference or both. With an absolute cell reference in excel, we can keep a row or a column constant or keep both constant. It doesn’t change when copied to other cells.

How to Create an Absolute Cell Reference in Excel?

Below are the steps to convert a cell address into an absolute cell reference:

• Select a cell where you want to create an absolute cell reference. Suppose cell A1.
• =A1 – It is a relative reference by default. However, to create an absolute reference, we need to add a dollar sign ($) before the column or row coordinates.
• =$A1 –  If we put a $ dollar sign before the column coordinate (A), it will only lock the column. This means that when we copy or drag this formula cell to other cells in the same row, the column will remain fixed at A, while the row coordinate will change.
• =A$1 – If we put a $ dollar sign before the row coordinate (1), it will lock only rows. This means that when we copy or drag this cell to other cells in the same column, the row coordinate will remain fixed at 1, while the column coordinate will change.
• =$A$1 – It’s called an absolute cell reference, and it locks both the row and the column. It means that if we drag or copy this cell, the formula cell will remain constant, i.e., it will always refer to cell A1, no matter where it is copied or dragged.

How to Use Absolute Cell Reference in Excel?

Let’s take some examples to understand the use of an absolute cell reference in excel.

You can download this Absolute Reference Excel Template here – Absolute Reference Excel Template

Absolute Reference in Excel – Example #1

In the below table, data is available for a group of workers, including their names and the corresponding number of hours worked. The hourly wage rate is $10.00 per hour. We need to calculate the gross pay for each worker based on their hours worked.

Solution:
We will input the hourly wage rate amount of $10 in cell B16. Then, as seen in the image below, to calculate the gross pay for the first employee (John), we will multiply the fixed-wage hourly rate of $10.00 (cell B16) by the number of hours worked (cell B20). Therefore, we will enter the formula “=B20*B16” in cell C20.

The result is $50, as shown below.

However, if we drag the formula and paste it into the corresponding cells in each row for the other workers, it will give incorrect results, as shown in the below image. This is because the fixed-wage hourly rate is changing for each worker.

To fix this, we must make the cell containing the fixed-wage hourly rate an absolute cell reference by adding a $ sign before the column name and row number.

We can put a $ dollar sign before the column name and before the row number, like this – $B$16. The result is shown below.

Through this, we can lock the value of B16 for all workers. Now, we can drag this formula for the rest of the workers to recalculate their gross pay.

Note: You can use the F4 key as a shortcut to make a cell an absolute cell reference. It automatically inserts a dollar sign in both places.

Absolute Reference in Excel – Example #2

Alice went to a retail shop and purchased about 15 groceries and beauty products. Each item has a GST rate of 10%. To calculate the Net Amount, we need to determine the tax rate for each item.

Solution:
First, we will calculate the total price of each item by multiplying the no. of items by the corresponding product price.

The result is seen below.

Drag this formula for the rest of the products to get their total prices.

To calculate the tax rate for each product, multiply the total price by the GST rate (which is 10%).

Use an absolute cell reference for the GST rate by making cell E33 an absolute reference using the F4 key. This will add a $ sign before E and 33 like this – $E$33

The result is 20.

Drag this formula for the rest of the products to get their tax rates. For instance, the formula in cell F49 is =E35*$E$33.

To calculate the net amount, add the total price with the GST for each product using the SUM Function in excel.

The final result is Rs. 300.60 (the sum of the net amounts for all the products).

Advanced Techniques

There are several advanced techniques you can use with absolute references in Excel. Here are a few examples:

#1 Using Absolute References to Create Dynamic Range Names

You can use absolute references to create dynamic range names that automatically adjust depending on the data size.

Suppose you have a dataset as shown below. To create a dynamic range name for the Sales column, follow these steps:

Date	Sales
01/01/2022	$100
02/01/2022	$200
03/01/2022	$300
04/01/2022	$400
05/01/2022	$500

1. Select the entire column (in this case, B2:B6).

2. Click on the “Formulas” tab, and then click on “Define Name” in the “Defined Names” section.

3. In the “New Name” dialog box, enter a name for the range (e.g., “SalesData“).

4. In the “Refers to” field, enter the formula =OFFSET(Sheet1!$B$2,0,0,COUNTA(Sheet1!$B:$B)-1,1), and then click OK.

This will create a dynamic range name that adjusts automatically when new data gets added to the Sales column.

#2 Using Absolute References with IF Function

You can use absolute references with the IF function to perform calculations based on specific criteria.

Suppose you have the following dataset:

Date	Sales
01/01/2022	$100
02/01/2022	$200
03/01/2022	$300
04/01/2022	$400
05/01/2022	$500

To use Absolute References with the IF function, follow these steps:

1. In cell C2, enter the formula =IF(B2>$300,”Yes”,”No”).

2. Copy the formula down to the rest of the cells in column C.

This will use an absolute reference to compare each value in the Sales column to a fixed value ($300 in this case) and return “Yes” if the value exceeds $300.

Things to Remember

1. Use relative references when appropriate: Relative references can make your formulas simpler and easier to read, especially for simple calculations. Reserve absolute references for situations where you must lock a specific cell or range of cells.
2. Understand the difference between references: Excel also allows for mixed references, enabling you to lock only one part of a cell reference while leaving the other relative. Ensure you understand the difference and choose the appropriate reference type for your needs.
3. Avoid circular references: A circular reference is when a formula returns to its cell, forming an endless loop. This can cause errors in a spreadsheet.
4. Document your formulas: If you share your spreadsheet with others or need to refer to it later, document them. So that others can understand how they work and troubleshoot any issues.
5. Use named ranges: Rather than referencing cells in your formulas, consider using named ranges to make your formulas easier to understand and sustain.
6. Use comments: If your formulas are particularly complex, consider using comments to explain how they work and why you chose to use absolute references in certain places.
7. Separate sheet for formulas: If you have many complex formulas in your spreadsheet, consider creating a separate sheet for storing and documenting your formulas. This can make managing and troubleshooting your formulas easier, especially if you need to make changes later.

Common Errors

There are a few common errors that people make when using absolute references in Excel. Some of these errors include:

1. Forgetting to use the dollar sign: When creating an absolute reference, it is essential to utilize the sign of dollar ($) before the column and row of the cell reference to lock it. If you forget to do this, Excel will interpret it as a relative reference, which can result in incorrect calculations.
2. Using the wrong reference: It’s easy to reference the wrong cell when using absolute references, especially when working with large datasets. This can happen if you accidentally select the wrong cell or change the position of the referenced cell without updating the formula.
3. Copying and pasting incorrectly: When copying and pasting formulas that contain absolute references, you need to make sure that you select the correct cell when pasting the formula. If you paste the formula into the wrong cell, the absolute reference may not point to the intended cell, resulting in incorrect calculations.
4. Forgetting to lock the correct cell: When creating an absolute reference, it’s important to lock it using the dollar sign. If you lock the wrong cell or forget to lock it, it can lead to errors in your calculations.
5. Using absolute references unnecessarily: While they can be helpful in certain situations, they can make your formulas more complex and harder to read. It’s important to use them judiciously and only when necessary.
6. Failing to update absolute references: If you change the location of cells or ranges referenced in your absolute reference, you must update the reference accordingly. Forgetting to do so can guide you to errors in your calculations.

Advantages of Absolute References

1. Saves Time: Using absolute references in Excel saves you time when copying formulas across many cells. The fixed value or formula can be in reference without manually updating each cell. This is particularly useful when working with large data sets or complex formulas.
2. Accuracy: Absolute references can help ensure the accuracy of formulas by keeping specific values constant. This is especially useful when working with complex formulas that reference many cells. By using absolute references, you can be confident that the formula will always produce the correct result, regardless of changes to other cells.
3. Customization: Absolute references are customizable in Excel, allowing you to choose which cells to remain fixed and which cells you want to be relative. This flexibility creates formulas that adapt to different situations, like changes in input variables or data structure.
4. Replication: Absolute references help replicate formulas with fixed values, such as commission calculations. By creating an absolute reference to the fixed value, you can copy the formula to other cells without manually adjusting each one. This can save time and reduce the risk of errors.
5. Improved readability: Absolute references make formulas easier to read and understand. They show which cells contain constants and variables. By fixing specific values in your formulas, you can show which cells are input and output, making the formula easier to follow.
6. Consistent formatting: Absolute references ensure that your Excel sheets are consistent. You can keep your formulas and charts neat and tidy by fixing certain cells and ranges, even adding or removing data. This can make reading and understanding the data easier and help prevent formatting errors.

Disadvantages of Absolute References

1. Harder to Read: While absolute references can offer benefits, they can make formulas more complex and harder to read. This is particularly true when you have many absolute references in the same formula. In this case, the formula can become difficult to understand and troubleshoot, especially if you didn’t create it yourself.
2. Error-Prone: Absolute references can be error-prone if you forget to lock the correct cells. This can lead to incorrect calculations and wasting time troubleshooting the issue. Suppose you forget to lock the cell that contains the fixed tax rate in a sales tax calculation formula. Here, copying the formula to other cells may result in incorrect calculations.
3. Potential for Data Inaccuracy: While absolute references can help ensure accuracy by keeping specific values constant, they can also lead to data inaccuracy if the referenced cell or range of cells contains incorrect data. For example, suppose the cell containing the fixed tax rate in a sales tax calculation formula has the wrong value. In that case, all the cells referencing that cell will also produce incorrect results.
4. Difficulty Adapting to Changes: Using absolute references can make it more difficult to adapt to changes in data, especially if you need to change the cells that contain fixed values. In this case, you may need to update all the formulas referencing the fixed cells, which can be time-consuming and prone to errors.
5. Limits Flexibility: While absolute references can allow you to choose which cells to fix and which to be relative to, they can also limit flexibility by fixing cells you may want to change. For example, if you create a formula that references a cell containing a date, using an absolute reference will fix the date to the specific cell, making it difficult to change the date without changing the formula.

Relative vs Absolute References

Aspect	Relative References	Absolute References
Definition	References that adjust with cell movement	References that remain constant despite movement
Denoted By	Denoted by cell references without dollar signs	It was Denoted by cell references with dollar signs
Change	Change based on where they are copied or moved	Remain fixed regardless of where they are copied or moved
Usage	Useful when creating formulas that need to be adjusted based on location	Useful when creating formulas that need to reference specific cells
Syntax	A referenced cell gets indicated by its position	A referenced cell gets indicated by its cell address
Example	If you copy a formula that refers to cell A1 and pastes it into cell B1, the reference in the formula will change from A1 to B1.	If you copy a formula that refers to cell A1 and pastes it into cell B1, the reference will remain A1.

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