Microsoft Office Tutorials and References

In Depth Information

**Chapter 15: Introducing Formulas and Functions**

15

Introducing Formulas

and Functions

IN THIS CHAPTER

Understanding formula basics

Entering formulas and functions into your worksheets

Understanding how to use references in formulas

Correcting common formula errors

Getting tips for working with formulas

Formulas are what make a spreadsheet program so useful. If it weren’t for formulas, a

spreadsheet would simply be a fancy word-processing document that has great support for tabular

information. You use formulas in your Excel worksheets to calculate results from the data

stored in the worksheet. When data changes, the formulas calculate updated results with no extra

effort on your part. This chapter introduces formulas and functions and helps you get up to speed

with this important element.

Understanding Formula Basics

A
formula
consists of special code entered into a cell. It performs a calculation of some type and

returns a result, which is displayed in the cell. Formulas use a variety of operators and worksheet

functions to work with values and text. The values and text used in formulas can be located in

other cells, which makes changing data easy and gives worksheets their dynamic nature. For

example, you can see multiple scenarios quickly by changing the data in a worksheet and letting your

formulas do the work.

A formula can consist of any of these elements:

Mathematical operators, such as
+
(for addition) and
*
(for multiplication)

■

Cell references (including named cells and ranges)

■

Values or text

■

Worksheet functions (such as
SUM
or
AVERAGE
)

■