Formulas and Functions

A formula is an expression which calculates the value of a cell.

Functions are predefined formulas and are already available in Excel.

For example, cell A3 below contains a formula which adds the value of cell A2 to the
value of cell A1.

For example, cell A3 below contains the SUM function which calculates the sum of
the range A1:A2.

Enter a Formula
To enter a formula, execute the following
steps.
1. Select a cell.
2. To let Excel know that you want to
enter a formula, type an equal sign
(=).
3. For example, type the formula A1+A2 in cell A3.
4. Change the value of cell A1 to 3.
Excel automatically recalculates the value of cell A3. This
is one of Excel's most powerful features!
Tip: instead of typing A1 and A2, simply select cell A1 and cell A2.
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Edit a Formula
When you select a cell, Excel shows the value or
formula of the cell in the formula bar.
1. To edit a formula,
click in the formula
bar and change the
formula.

2. Press Enter.

Operator Precedence
Excel uses a default order in which calculations occur.
If a part of the formula is in parentheses (Brackets), that part will be calculated first.
It then performs multiplication or division calculations.
Once this is complete, Excel will add and subtract the remainder of your formula.
See the example below.
First, Excel performs multiplication
(A1 * A2). Next, Excel adds the value of
cell A3 to this result.

Another example, First, Excel calculates

the part in brackets (A2+A3). Next, it
multiplies this result by the value of cell A1.

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Arithmetic operators
Arithmetic operators combine numbers, cell addresses, and function to perform
calculations.
Table below summarizes the mathematical operators used in arithmetic
formulas.
Operator

*
/
%
^

Name

Example

Result

Addition

=10+5

15

Subtraction

=10-5

Multiplication

=10*5

50

Division

=10/5

Percentage

=10%

0.1

Exponentiation

=2^3

Most of these operators are straight forward, but the exponentiation operator might
require further explanation.
The formula =x^y means that the value x is raised to the power y.
For example, the formula =2^3 produces the result 8 (that is, 2*2*2=8).
Similarly, the formula =2^4produces 16 (that is, 2*2*2*2=16).

Comparison Operators
You can compare two or more numbers, text strings, cell contents, or
function results with comparison operators.
If the statement is true, the result of the formula is given the logical
value TRUE (which is equivalent to 1).
If the statement is false, the formula returns the logical value FALSE
(which is equivalent to 0).
Table below summarizes the operators you can use in comparison formulas.
Operator

Name

Example

Result

Equal to

=10=5

FALSE

>

Greater than

=10>5

TRUE

<

Less than

=10<5

FALSE

>=

Greater than or equal to

=10>=15

FALSE

<=

Less than or equal to

=10<=10

TRUE

<>

Not equal to

=10<>15

TRUE

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Simple formulas in Excel

By combining a mathematical operator with cell references, you can create a variety
of simple formulas in Excel.
Formulas can also include a combination of cell references and numbers, as in the
examples below:

=A1+A2
=C4-3
=E7/J4
=N10*1.05
=F5^2
=G8*10%

Adds Value in Cell A1 & A2

Subtracts 3 from value in cell C4
Divides cell E7 by Cell J4
Multiplies cell N10 by 1.05
Finds the Square of cell F5
Finds 10 percent of value in cell G8

Find 30% of Cell Value A1

If Sales Price of a Shoe pair is Rs. 451 & its Cost Price is Rs. 410, What
will be the Profit?

Calculate the Percentage of Profit for above?

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If obtained marks is 370 out of 500, than what is the percentage?

If Basic Salary is 35 % of Gross Salary Rs. 40000, then what will be the
Basic salary?

7.

MRP of a product is 499, you are allowed a discount 15%,

Calculate Net Price after discount.

Try:
Sales given by you to a company is Rs. 150000
Company rewarded you an amount of Rs. 22500 as incentive
Calculate the percent of incentive you got?
Answer: 15%

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