Excel uses dollar signs ($) to indicate absolute references. The $ can be included in the formula by using the F4 button or by typing it directly. Go back to the original formula. Click between the E and the 2. Press the F4 button. This tells Excel that as the formula is copied, the E2 reference should stay constant.

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Use coordinate references for cells that contain the values used in your formula.

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Version and computer that you’re using, but Microsoft Excel will function in the same basic ways. There are other spreadsheet programs out there, including Google Spreadsheets (part of Google Docs), OpenOffice Calc, Apple iWorks Numbers, Lotus 1-2-3, and WordPerfect Quattro.

While you can include numeric constants in your formulas, in most cases you'll use values entered in other cells (or the results of other formulas displayed in those cells) in your formulas. You refer to those cells with a coordinate reference of the row and column the cell is in. There are several formats:

The most common coordinate reference is to use the letter or letters representing the column followed by the number of the row the cell is in: A1 refers to the cell in Column A, Row 1. If you add rows above the referenced cell or columns above the referenced cell, the cell's reference will change to reflect its new position; adding a row above Cell A1 and a column to its left will change its reference to B2 in any formula the cell is referenced in.
A variation of this reference is to make row or column references absolute by preceding them with a dollar sign ($). While the reference name for Cell A1 will change if a row is added above or a column is added in front of it, Cell $A$1 will always refer to the cell in the upper left corner of the spreadsheet; thus, in a formula, Cell $A$1, could have a different, or even invalid, value in the formula if rows or columns are inserted in the spreadsheet. (You can make only the row or column cell reference absolute, if you wish.)
Another way to reference cells is numerically, in the format RxCy, where 'R' indicates 'row,' 'C' indicates 'column,' and 'x' and 'y' are the row and column numbers. Cell R5C4 in this format would be the same as Cell $D$5 in absolute column, row reference format. Putting either number after the 'R' or the 'C' makes that reference relative to the upper left corner of the spreadsheet page.
If you use only an equal sign and a single cell reference in your formula, you copy the value from the other cell into your new cell. Entering the formula '=A2' in Cell B3 will copy the value entered into Cell A2 into Cell B3. To copy the value from a cell in one spreadsheet page to a cell on a different page, include the page name, followed by an exclamation point (!). Entering '=Sheet1!B6' in Cell F7 on Sheet2 of the spreadsheet displays the value of Cell B6 on Sheet1 in Cell F7 on Sheet2.

Can Microsoft Excel formulas be easy to learn? Yep! This tutorial explains the very basics of Excel formulas for beginners, with detailed steps on how to write and use them. It also provides a number of advanced formula examples for experienced users. You will be amazed how simple creating formulas in Excel actually is.

If asked what Microsoft Excel is about, what would be your answer? Right, it's all about storing and crunching numbers. You can use Excel to calculate percentages and compound interest, count and sum cells based on specific criteria, find average, and even get a sample deviation of a given set of values. All this can be done by using Excel formulas.

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In this tutorial, we are going to learn the basics of creating and using formulas in Excel. And because one of the most efficient ways to learn is through practice, we will also discuss a number of formulas examples to make things easier to understand. Here's a list of topics we are going to cover:

How to create formulas in Excel

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:
- Type the entire equation: =B1+B2+B3+B4+B5
- Use the SUM function: =SUM(B1:B5)
Press the Enter key to complete the formula. Done!

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(A1, A2, B5).
To refer to data in two or more contiguous cells, use a range reference like A1:A5. For example, to sum values in all cell between A1 and A5, inclusive, use this formula:
=SUM(A1:A5).
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.
Comparison (logical) - to compare values.
Concatenation - to join text values into a single string.
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

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