📑 Table of Contents
- Why Excel Formulas Matter
- What is an Excel Formula?
- Basic Formula Operators
- Cell References: Relative vs Absolute
- Your First Real Example
- Quick Practice Challenge
- Key Takeaways
1️⃣ Why Excel Formulas Matter
Excel is far more than rows and columns—it’s a powerful tool for calculations, data analysis, and automation.
Formulas are the engine that makes Excel smart. They help you:
- Perform calculations instantly
- Automate repetitive tasks
- Turn raw data into meaningful insights
Whether you’re managing a personal budget, analyzing sales data, or tracking a project, mastering formulas is the first step to becoming an Excel power user.
2️⃣ What is an Excel Formula?
An Excel formula is an equation that performs a calculation on your data.
Every formula starts with an equal sign (=).
Example:
=2+3
This adds two numbers and returns 5.
You can also refer to cells instead of typing numbers:
=A1 + B1
This adds the values stored in cells A1 and B1.
3️⃣ Basic Formula Operators
Excel uses common mathematical operators. Here’s a quick reference:
| Operator | Function | Example | Result |
|---|---|---|---|
+ | Addition | =5+3 | 8 |
- | Subtraction | =10-4 | 6 |
* | Multiplication | =2*4 | 8 |
/ | Division | =20/5 | 4 |
^ | Exponentiation | =3^2 | 9 |
4️⃣ Cell References: Relative vs Absolute
Cell references tell Excel where to find the data.
Understanding the difference between relative and absolute references is key.
Relative Reference
Changes when you copy the formula.
Example:
=A1 + B1
If copied one row down, it becomes:
=A2 + B2
Absolute Reference
Remains fixed even when copied.
Example:
=$A$1 + $B$1
The dollar signs lock the row and column.
💡 Tip: Press F4 after selecting a cell reference to quickly switch between relative and absolute references.
5️⃣ Your First Real Example
Suppose you want to calculate total monthly expenses.
| Item | Cost |
|---|---|
| Rent | 10000 |
| Groceries | 4000 |
| Utilities | 2000 |
Steps:
- Enter the costs in B2:B4.
- In cell B5, type:
=SUM(B2:B4) - Press Enter – Excel instantly adds the numbers and displays 16000.
6️⃣ Quick Practice Challenge
👉 Create a small table of five items and their prices.
👉 Use:
=AVERAGE()to calculate the average price.=MAX()to find the highest price.
This will help you get comfortable with entering and copying formulas.
7️⃣ Key Takeaways
- Every Excel formula starts with
=. - Use basic operators (
+,-,*,/,^) for quick calculations. - Understand the difference between relative and absolute cell references.
- Start practicing with simple formulas like SUM, AVERAGE, and MAX before moving to advanced ones.
