Lesson 1

Formulas in Excel 2016

Topics:

Cell and range references

Using formulas

Error results

AutoSum features

Functions Library

In Excel, formulas are written differently from how you write them in math.

An Excel formula always starts with an equal (=) sign and it can contain values, cell references,
functions, and operators.

Values: 987 and 36.7 (numeric), “Computer” and “Hi” (string)

Cell references: C3, B2:B5, A2:D8, B:E, 4:10

Functions: sum, average, min, max, count

Operators: +, -, *, /, ^, >

Thus, a formula in Excel is a sequence of values, cell references, functions, and/or operators in a cell
that produces a new value from existing values.

CELL AND RANGE REFERENCES

A reference identifies a cell or a range of cells in a worksheet, and tells Excel where to look for the
values or data you want to use in a formula. Let us consider a few examples.

The cell in column A and row 1 A1

The range of cells in column B and row 1 through 20 B1:B20
The range of cells in row 4 and columns B through D B4:D4
All cells in row 8 8:8
All cells in rows 3 through 6 3:6
All cells in column E E:E
All cells in columns B through D B:D
The range of cells in columns C through E and rows 5 through 10 C5:E10
USING FORMULAS:

To enter a formula, select a cell and enter the formula in the cell or in the Formula bar. When you
finish entering the formula and press Enter, the cell will show the formula result and not the formula
itself.

However, you see the formula in the formula bar when the cell is selected.

Pointing: Adding a cell reference to a formula by clicking a cell or a range.

Types of Cell reference

1. Relative cell reference

2. Absolute
3. Mixed references

Relative Cell reference:

In relative cell referencing, the row and column references can change when you copy the formula to
another cell. By default, Excel creates relative cell references.

Absolute cell references

In absolute cell referencing, the row and column references do not change when you copy a formula
because the reference is to a fixed cell address. It uses two-dollar signs in the reference – One for the
column letter and the other for the row number.

For example, $A$1, $D$5, and $B$7

Mixed cell references

In mixed cell referencing, the row or column reference is relative while the other is absolute.

For example, $A1 or A$1

Text formulas

A text string or a text value is a sequence of characters on which you cannot perform operations such
as subtraction, multiplication, or division. However, you can join strings together. This is called
concatenation.

We use ampersand(&) character to concatenate strings.

For example, if you type =”Work”&””&”Hard” in a cell and press enter, you will see the result Work
Hard.

Mathematical Operators used in Formulas

The below table shows the mathematical operators used in Excel and their order of evaluation in
formulas from first to last.
 Operation Operator Order of Formula Result
Evaluation
Exponent ^ 1 2^4 16
Multiplication * 2 8*5 40
Division / 2 10/3 3.33
Addition + 3 24+58 82
Subtraction - 3 46-19 27

Error Result

Sometimes, a formula displays an error result rather than a proper value. This happens when the
formula has a problem and Excel cannot calculate the formula.

Common formula errors in Excel

##### The column is not wide enough to display the value.

#DIV/0! The formula contains an invalid operations, i.e., division by zero.
#N/A The formula uses a value that is not available.
#NUM! A Problem with a value; for example, a negative number is specified
when a positive number is expected.
#REF! The formula refers to a cell that does not exist. This happens if the
cell has been deleted from the worksheet.
#VALUE! The formula has an invalid argument: for example, text in a cell
where a numeric value is required.

AutoSum Feature

The autosum feature automatically adds numbers in the selected cells.

You can also use it to find the average, maximum, etc., for a range of cells.

The autosum button is present at two places on the ribbon.

1. In the Editing group on the Home tab.

2. In the function library group on the formulas tab.

FUNCTIONS LIBRARY:

FUNCTIONS in excel are predefined formulas that perform specific calculations.

Click the formulas tab. In the function library group, click the function button for the category of
function you want to use, such as Financial, Logical, Text, Date & Time, Lookup & reference, or Math
& Trig.