Learn about Excel Formulas

If you’re new to Excel, learning how to use basic Excel formulas is an essential skill. Here I will step you through the process I use when teaching Excel to beginners so that you have an understanding of the fundamentals and explore we’ll explore some basic Excel formulas to get you started. Here you’ll learn how to write them, and why they are so useful for everyday tasks.

Many people have used Excel for years but still rely on a calculator for basic calculations. This is often because they’re unsure where to start with creating an Excel formula or don’t fully trust the results.

Let’s explore some simple tips to help you start using Excel formulas with confidence!

Excel Formulas vs Excel Functions: What’s the Difference?

You’ll often hear the terms “formulas” and “functions” used when working in Excel. Although related, they do describe slightly different features of Excel. Here’s a quick breakdown:

Name	Description	Example
Formula	A formula is a user-created calculation. It can include cell references, functions, named ranges, or values. All formulas begin with an equals (=) sign.	=(A1+C3)*10
Function	A function is a predefined calculation in Excel with a specific purpose. You can use functions inside formulas or on their own.	=SUM(A4:A28)

As you can see above, both Excel formulas and functions require the use of the equals (=) sign at the beginning. This is something I reinforce regularly during my Excel training sessions.

If you forget the equals sign, Excel will treat the input as plain text and not perform any calculation. The equals sign tells Excel to calculate, it’s a crucial step.

Using the Formula Bar

Another important part of working with Excel formulas and functions is understanding the Formula Bar. It allows you to view, edit, and troubleshoot formulas in any selected cell. This is especially useful when you’re working on a spreadsheet created by someone else.

You’ll find the Formula Bar located above the column headings and cell grid. When you work with more complex formulas, you can expand the bar using the small down arrow to the far right. This gives you more space to view longer functions.

If the Formula Bar disappears, you can re-enable it by clicking on the View tab and ticking the Formula Bar checkbox in the Show group.

When you begin to create more complex calculations, you have the ability to increase the height of the formula bar by clicking the down arrow to the far right-hand side of the bar. This will increase the height of the bar and allow you to view long complex calculations much more easily.

I have seen many instances where a user’s formula bar has disappeared, potentially after some erratic mouse movements or seemingly on its own. In order to get the bar back again click on the View tab and tick the option for Formula bar within the Show group.

Why Cell References Are Important in Excel Formulas

When creating an Excel formula, it’s best practice to use cell references instead of typing in fixed values. This offers several advantages:

• You can click on cells to insert references while writing your formula.
• If a cell value changes, the formula result updates automatically.
• It makes formulas easier to copy and reuse.

In the example below, you can see on the left side that the calculation being created in cell B9 is using the actual values in the formula. If these values were to change at any time I would need to go through my formulas and manually update each value every time I entered it. On the right side you can see that instead of using the actual values, I have used the cell reference of the cell containing the value I want to add together. If any value changes I just change it once within the cell which holds the value and all calculations using that will automatically update.

Understanding Order of Operations in Excel Formulas

Understanding how Excel formulas handle multiple operations is key to getting accurate results. You might remember the acronym BIDMAS from school:

Brackets, Indices, Division, Multiplication, Addition, Subtraction

Excel follows BIDMAS when performing calculations. A common mistake is assuming Excel calculates from left to right, but it doesn’t.

Here’s an example:

• =B3+B4+B5/3 will divide B5 by 3, then add B3 and B4, which may lead to a misleading result.
• =(B3+B4+B5)/3 uses brackets to correctly calculate the total before dividing.

This is a simple example of how understanding BIDMAS helps you trust your Excel formulas more.

How to Add, Subtract, Multiply and Divide

One of the first things you’ll likely need to do in Excel is perform basic arithmetic using an Excel formula. Below are the four core calculations: add, subtract, multiply and divide, all using simple formulas.

How to add values together in Excel

To add numbers together in Excel, use the plus sign (+) in your formula.

1. Open Microsoft Excel and create a new blank workbook.
2. In the worksheet, type 2 to 3 random numbers into column A.

3. Click in a cell at the bottom of column A, this will be where the answer will be dispalyed.
4. Type in the equals sign (=).
5. Use the mouse to select the first value which is in cell A1.
6. Type in the plus symbol (+)
7. Now use the mouse to select the second value located in cell A2.
8. Type in the plus symbol (+) again.
9. Now use the mouse to select the third value (if you added one) located in cell A3.

10. Press Enter to see the answer appear.
11. Let’s have another go at that, type a second set of numbers into column B and repeat this step to add the values together.
12. You can now change any of the original values in column A or B and the calculation will automatically update with the new answer.

How to subtract values in Excel

To subtract one value from another, use the minus sign (-).

1. Click in column D and enter 2 numbers – 1 larger and 1 smaller number:

2. Click in a cell at the bottom of column D, this will be where the answer will be dispalyed.
3. Type in the equals sign (=).
4. Use the mouse to select the first value which is in cell D1.
5. Type in the minus symbol (–).
6. Now use the mouse to select the second value located in cell D2.

7. Press Enter to see the answer appear.
8. Enter a second set of numbers into column E and repeat this step to subtract the values.
9. You can now change the first values in column D or E and the calculation will automatically update with the new answer.

How to multiply values in Excel

To multiply values, use the asterisk symbol (*).

1. Click in column G and enter 2 numbers – 1 larger and 1 smaller number:

2. Click in a cell at the bottom of column G, this will be where the answer will be dispalyed.
3. Type in the equals sign (=).
4. Use the mouse to select the first value which is in cell G1.
5. Type in the multiply symbol (*) by pressing Shift + 8 on the keyboard.
6. Now use the mouse to select the second value located in cell G2.

7. Press Enter to see the answer appear.
8. Enter a second set of numbers into column H and repeat this step to multiple the values.
9. You can now change the first values in column G or H and the calculation will automatically update with the new answer.

How to divide values in Excel

To divide values, use the forward slash (/).

1. Click in column J and enter 2 numbers – 1 larger and 1 smaller number:

2. Click in a cell at the bottom of column J, this will be where the answer will be dispalyed.
3. Type in the equals sign (=).
4. Use the mouse to select the first value which is in cell J1.
5. Type in the divide symbol (/) which is located on the key with the ? symbol (bottom left corner of the keyboard).
6. Now use the mouse to select the second value located in cell J2.

7. Press Enter to see the answer appear.
8. Enter a second set of numbers into column K and repeat this step to divide the values.
9. You can now change the first values in column J or K and the calculation will automatically update with the new answer.

You can also check out the official Microsoft documentation here.

Next Steps: working with Excel Fucntions

Check out my Introduction to Functions article which outlines how to use some of the key functions in Excel including AutoSUM, AVERAGE, COUNT, MIN and MAX. Using these few tips you now have the information you need to begin creating your own calculations in Excel.

If you want to continue and venture into the world of formulas you may like to see the following posts:

• Introduction to Functions in Microsoft Excel
• Discover BIDMAS and Excel
• Create a Vlookup function in Excel
• Use Concatenate to join text together in Excel
• How to use Countif in Excel
• How to use the COUNTIFS Function in Excel
• How to use XLOOKUP in Excel (with examples)

Feel free to comment below with any questions.