Formulas in Microsoft Excel begin with an

equal sign. The equal sign tells Excel that the

succeeding characters constitute a formula. If
you don't enter the equal sign, Excel will treat
your entry as text and the calculation will fail.
Entering Formulas
After the equal sign, a formula includes the addresses of the cells whose values will
be manipulated with appropriate operands placed in between. The operands are the
standard arithmetic operators:

Operator Meaning Example

(+) Addition =A7+A9
(-) Subtraction =A7-A9
(*) Multiplication =A7*A9
(/ ) Division = A7/A9
(ˆ ) Exponents =A7ˆA9
You can also enter formulas by using the point mode, where you either
click on a cell with your left mouse button or you use the arrow keys.

ˆTo enter ’=B2+B3+B4+B5’ into cell B6 using the point:

– Left click on cell B6 to make it active.
– Type ’=’.
– Use the up arrow key to move to cell B5, or left click on cell B5.
– Type ’+’.
– Use the up arrow or mouse to add cells B4, B3, and B2 in the same
fashion.
– Press Enter when you are finished entering the formula.
Functions are pre -defined
formulas that come with
Excel.
Entering Functions
Functions differ from regular formulas in that, after the
equal sign, you supply the cell addresses but not
the arithmetic operators. Functions perform calculations by
using specific values, called arguments, in a
particular order called syntax. When using a function,
remember the following:

ˆUse an equal sign to begin the function.

ˆSpecify the function name.
ˆEnclose all of the function’s arguments within parentheses.
ˆUse a comma to separate the function’s individual
arguments.
Reference Operators
Reference operators refer to a cell or a group of cells. There are two main types of
reference operators:
1. Range:
ˆRefers to all of the cells between and including the reference.
ˆConsists of two cell addresses separated by a colon.
ˆEXAMPLE: ’A1:A3’ includes cells A1, A2, and A3.
ˆEXAMPLE: ’A1:C3’ includes cells A1, A2, A3, B1, B2, B3, C1, C2, and C3.
2. Union:
ˆIncludes two or more references.
ˆConsists of two or more cell addresses separated by a comma.
ˆEXAMPLE: ’A7, B8, C9’ refers to cells A7, B8, and C9.
ˆEXAMPLE: ’A7, B8:D9, E4’ refers to cells A7, B8, B9, C8, C9, D8, D9 and E4.
Autosum
You can use the Autosum icon on the standard toolbar, which
automatically adds the contents of a cluster
of adjacent cells.

ˆSelect the cell that the sum will appear in that is outside the cluster of
cells whose values will be added.
ˆClick the Autosum button (Greek letter sigma, Σ).
ˆHighlight the group of cells that will be summed.
ˆPress the Enter key on the keyboard or click the green check mark on the
formula bar.
Function Wizard
You can access all of the available functions in Excel using the Function
Wizard.
ˆSelect the cell where the function will be placed and click the Function
Wizard button on the standard
toolbar.
ˆOther ways of starting the Function Wizard are:
– Select Function from the Insert drop menu.
– Click on the drop down arrow next to the Autosum icon button.
* You will first see the commonly used functions in Excel, and at the
bottom of the menu, the
More Functions option.
* Clicking on More Functions will give you an alphabetical and categorical
listing of all available
functions in Excel.
Excel Formulas
A formula is a set of mathematical instructions that can be used
in Excel to perform calculations. Formulas are started in the formula
box with an = (equal) sign.

There are many elements to and excel formula.

References: The cell or range of cells that you want to use in your
calculation
Operators: Symbols (+, -, *, /, etc.) that specify the calculation to be
performed
Constants: Numbers or text values that do not change
Functions: Predefined formulas in Excel
Excel Formulas
To create a basic formula in Excel:
1. Select the cell for the formula
2. Type = (the equal sign) and the formula
3. Press Enter key
Excel Formulas
A Function is a built in formula in Excel. A function
has a name and arguments (the mathematical function) in
parentheses. Common functions in Excel:

Sum: Adds all cells in the argument

Average: Calculates the average of the cells in the
argument
Min: Finds the minimum value
Max: Finds the maximum value
Count: Finds the number of cells that contain a numerical
value within a range of the argument
Excel Formulas
To calculate a function:
1. Click the cell where you want the function applied
2. Click the Insert Function button
3. Choose the function
4. Click on Ok
5. Complete the Number 1 box with the first cell in the range that you want calculated.
6. Click on Ok

4
Function Library
The function library is a large group of functions on the Formula Tab of the
Ribbon. These functions include:

AutoSum: Easily calculates the sum of a range

Recently Used: All recently used functions
Financial: Accrued interest, cash flow return rates and additional financial functions
Logical: And, If, True, False, etc.
Text: Text based functions
Date & Time: Functions calculated on date and time
Math & Trig: Mathematical Functions
Relative, Absolute and Mixed References

Calling cells by just their column and row labels (such as "A1") is
called relative referencing. When a formula contains relative
referencing and it is copied from one cell to another, Excel does not
create an exact copy of the formula. It will change cell addresses relative
to the row and column they are moved to. For example, if a simple
addition formula in cell C1"=(A1+B1)" is copied to cell C2, the formula
would change to"=(A2+B2)" to reflect the new row. To prevent this
change, cells must be called by absolute referencing and this is
accomplished by placing dollar signs "$" within the cell addresses in the
formula. Continuing the previous example, the formula in cell C1 would
read "=($A$1+$B$1)" if the value of cell C2 should be the sum of cells
A1 and B1. Both the column and row of both cells are absolute and will
not change when copied. Mixed referencing can also be used where
only the row or column fixed. For example, in the formula"=(A$1+$B2)",
the row of cell A1 is fixed and the column of cell B2 is fixed.
Linking Worksheets
You may want to use the value from a cell in
another worksheet within the same workbook in a
formula. For example, the value of cell A1 in the
current worksheet and cell A2 in the second
worksheet can be added using the format
"sheetname!cell address". The formula for this
example would be"=A1+Sheet2!A2" where the
value of cell A1 in the current worksheet is added
to the value of cell A2 in the worksheet named
"Sheet2".
 List of functions

1. IF Functions

The IF function test to see whether a given condition

is true or false. Depending upon the result, different
outcomes for the function can be specified.
The IF function has also been combined with other
popular Excel functions to create such functions as
SUMIF, COUNTIF, and AVERAGEIF.
2.Date and Time Functions
Dates are very important in spreadsheet programs
like Excel. Most spreadsheets make use of dates in
some way. Listed below are a number of date-
related tutorials. Each tutorial includes a step by
step example of working with dates in Excel.
3.Math and Trig Functions
The math functions carry out basic
math operations such as adding, multiplying, and
dividing numbers.
The Trig functions can be used to find the sine,
cosine, and tangent of an angle as well as
converting angle sizes between radians and
degrees.
4.Random and Rounding
Number Functions

The random number tutorials cover the functions

that are used generate random numbers in Excel.
The rounding number tutorials cover the functions
in Excel that are used when rounding numbers up
or down.
5.Logical Functions

These functions return only a true or false

answer. They can be used individually or
combined with one or more other functions.
6.Text and Information
Functions

Excel's Text Functions help you manage the text data in

your spreadsheets.
The Information functions tell about the data in a cell or
range of cells. This information includes whether the data is
a number, the formatting applied to the cell, or even if the
cell is empty.
7.Count and Database
Functions

Excel has a number of Count functions that will total the

number of cells in a selected range that meet certain
criteria. Since each Count function does a slightly different
job the criteria required varies with the function chosen.
Excel's database functions can be used to find specific
information based on one or more criteria that you set.
8.Statistical Functions

Excel's Statistical functions can be used to analyze

data in a variety of different ways. Functions
included in the program can be used to find
common statistical operations such as finding the
average value or ranking data by its largest and
smallest values as well as more complex operations
such as standard deviation.
9.Financial Functions

Excel's Financial Functions can be used to help you

determine changes in dollar value of investments
and loans.
10.Lookup Functions and
Formulas

Excel's VLOOKUP function can help you find specific

information in large data tables such as an inventory list of
parts or a large membership contact list.
In addition to VLOOKUP, there are several other - but lesser
known - functions that can be used to create specific
lookup formulas.
A Function instead of a Formula
Functions can be a more efficient way of performing mathematical operations than formulas.

Specifically , in

many cases, a function will simplify formulas that you can type in manually, such as average or sum.

ˆEXAMPLE: If you wanted to add the values of cells D1 through D10, you could type the formula

’=D1+D2+D3+D4+D5+D6+D7+D8+D9+D10’, or a shorter way would be to use the SUM function

and simply type ’=SUM(D1:D10)’.

The following table contains the definitions and examples of several other available functions:
Function Example Description
SUM =SUM(A1:A100) Finds the sum of cells A1 through A100.
AVERAGE =AVERAGE(B1:B10) Finds the average of the cells B1 through B10.
MAX =MAX(C1:C100) Returns the highest number from cells C1 through C100.
MIN =MIN(D1:D100) Returns the lowest number from cells D1 through D100.
SQRT =SQRT(D10) Finds the square root of the value in D10.
TODAY =TODAY() Returns the current date (leave the parentheses empty).
Copying Formulas/Functions and Cell
References
As we’ve seen, the best way to construct a formula or a function is to use cell references (i.e., use the cell

addresses) instead of typing actual numbers. In turn, this enables Excel to automatically update the results

of the formulas and functions when you change the values in the cells referenced.

Using cell references in formulas and functions is also important when you copy a formula or function. When

you copy the formula or function, the cell addresses will be copied in a particular way depending on how

the cells are referenced. Specifically, Excel records cell addresses in formulas and functions in three different

ways:

ˆRelative cell reference.

ˆAbsolute cell reference.

ˆMixed cell reference.

There are several different ways
exist to copy and paste a formula or
a function:
ˆUse Copy and Paste from the Edit drop menu.
ˆUse the Ctrl+C and Ctrl+P keyboard shortcuts.
ˆUse the Autofill feature – activate the cell
containing the formula or function by selecting
it and drag
the Autofill handle down the column or across
the row to fill in the remaining cells.
Relative Cell References
Calling cells by just their column and row labels (such as ’A1’) is called a relative cell reference. When

formulas or functions contain relative cell referencing and they are copied from one cell to another, Excel

does not create an exact copy of the formula or function. Instead, Excel changes the cell addresses relative

to the row and column they are moved to.

ˆEXAMPLE: If a simple addition formula of ’=A1+B1’ in cell C1 is copied to cell C2, the formula would

change to ’=A2+B2’ to reflect the new row.

ˆEXAMPLE: If a simple average function of ’=AVERAGE(B2:B5)’ in cell B6 is copied to cell C6, the

function would change to ’=AVERAGE(C2:C5)’ to reflect the new column.

Absolute Cell References

An absolute cell reference refers to the same cell, no matter where the formula or function is copied. In other

words, when a formula or function containing an absolute cell reference is copied to a new location, the cell

reference is not adjusted.

ˆTo create an absolute cell reference, you will need to add dollar signs (’$’) in front of both the column

and row identifiers for the cell referenced – this fixes the row AND column.

– You can add the dollar signs (’$’) automatically by using the F4 keyboard shortcut – press the

F4 key once after entering the cell address into the formula or function by typing or by using the

point mode.

ˆEXAMPLE: When the formula ’=B7*$C$1’ is copied from cell C7 to cell C8, the relative cell reference

changes ’B7’ to ’B8’, but the ’$C$1’ absolute cell reference remains unchanged.
An absolute cell reference is most often used when
you want to use a constant in a formula or
function.

ˆAdvantage of placing the constant in its own cell and using

an absolute cell reference: Referencing the cell containing
the constant in all the desired formulas and functions with
an absolute cell reference allows you to change the value of
the constant in the one cell and all the formulas and
functions absolutely referencing the cell will be
automatically updated. This is much better than typing the
actual value of the constant into the formulas or functions.
Mixed Cell References
You use a mixed cell reference to reference a cell that is part absolute and part
relative. In other words,
A mixed cell reference can be used when you wish to fix only the row OR the
column.
ˆEXAMPLE: In the formula ’=A$1 + $B2’, the row of cell A1 is fixed and the column
of cell B2 is fixed.
As with absolute cell referencing, you need to add a dollar sign (’$’), but only in
front of the column
OR row identifier for the cell referenced.
As before, you can add the dollar sign (’$’) automatically by using the F4 keyboard
shortcut ,as follows:
.
ˆIn the active cell, type ’=’.
ˆEnter a cell address either by typing or using
the point mode.
ˆPress F4 once – two dollar signs (’$’) are
entered (both the column and row identifiers
are absolute).
ˆPress F4 again – the column identified is now
relative and the row identifier is now absolute.
ˆPress F4 again – the column identified is now
absolute and the row identifier is now relative.
ˆPress the Escape key to deactivate the F4 key
Using Named Ranges Formulas and
Functions

When you are working with a large spreadsheet you can name a
range of cells and use the name in formulas
or functions.

ˆTo name a range, select the cells to be included in the range, and
then type a name in the Name Box located above the worksheet.
ˆRecall, the Name Box normally contains the address if the current
cell.
Linking Worksheets
You may want to use the value from a cell in
another worksheet within the same workbook
in a formula.
ˆUse the format ’sheetname!celladdress’.
ˆEXAMPLE: The value of cell A1 in the current
worksheet and cell A2 in the second worksheet
can be
added using the formula ’=A1+Sheet2!A2’.
The IF Function in Excel 2007
The IF function can be quite useful in a spreadsheet. It is used when you
want to test for more than one value.
IF(logical_test, value_if_true, value_if_false)

The thing to note here is the three items between the round brackets of
the word IF. These are the arguments that the IF function needs. Here's what
they mean:

logical_test The first argument is what you want to test for.

value_if_true This is what you want to do if the answer to the first argument
is YES.
value_if_false This is what you want to do if the answer to the first
argument is NO.
Comparison Operator
Equals (=)
Less than (<)
Less than or equal to (<=)
Greater than (>)
Greater than or equal to (>=)
Not equal to (<>)

: (colon) Range. Produces one reference to all the cells between two
references. (Reference Operator)
, (comma) Union. Combines multiple cell or range references into
one reference. (Reference Operator)
VLOOKUP Function in Excel 2007
Searches for a value in the first column of a table array and returns a
value in the same row from another column in the table array. The V in
VLOOKUP stands for vertical.
VLOOKUP(lookup_value,table_array,col_index_num,range_lookup)

Lookup_value The value to search in the first column of the table array.
Table_array Two or more columns of data. Use a reference to a range or a
range name. The values in the first column of table_array are the values
searched by lookup_value. These values can be text, numbers, or logical
values. Uppercase and lowercase text are equivalent.
Col_index_num The column number in table_array from which the
matching value must be returned. A col_index_num of 1 returns the value in
the first column in table_array; a col_index_num of 2 returns the value in the
second column in table_array, and so on.
Range_lookup A logical value that specifies whether you want VLOOKUP to
find an exact match or an approximate match. (TRUE/FALSE)
COUNT Function in Excel 2007

Counts the number of cells in a

range that contains a numbers.

COUNT(value1,value2,…)
COUNTIF Function in Excel 2007

Counts the number of cells within a

range that meet the given condition.

COUNTIF(range,criteria)

Range – is the range of cells from which you want to count nonblock cells.
Criteria – is the condition in the form of number, expression, or text that
defines which cells will be counted.
RANK Function in Excel 2007

Returns the rank of a number in a

list of numbers: its size relative to
other values in the list.
RANK(number,reference,order)

Number – is the number for which you want to find the rank.
Reference – is an array of, or a reference to, a list of numbers. Nonnumeric
values are ignored.
Order – (0 – descending order; 1 – ascending order)