How To Create A Formula In Excel Step By Step Guide

How to Create a Formula in Excel?

Let us create a simple calculator-type formula for adding up numbers to start with Excel formulas.

Look at the below data of numbers.

In cell A1, we have 25. The A2 cell has 40, the number.

In cell A3, we need the summation of these two numbers.

In Excel, to start the formula, always put the equal sign first.

Now, insert 25 + 40 as the equation.

It is very similar to what we do in the calculator.

Press the “Enter” key to get the total of these numbers.

So, 25 + 40 is 65, the same we got in cell A3.

#1 Create Formula Flexible with Cell References

As we can see in the formula bar, it is not showing the result. Rather, it shows the formula itself, and cell A3 shows the result of the formula.

From the above example, we will change the number from 25 to 30 and 40 to 50. Even though we have changed numbers in cells A1 and A2, our formula only shows the old result of 65. It is a problem with direct numbers passing to the formula. It does not make the formula flexible enough to update the new result. We can give cell reference as the formula reference to overcoming this issue. For example, open the equal sign in cell A3. Then, select cell A1. Insert plus (+) sign and select cell A2. Press the “Enter” key to get the result.

Even though we have changed numbers in cells A1 and A2, our formula only shows the old result of 65. It is a problem with direct numbers passing to the formula. It does not make the formula flexible enough to update the new result.

Now, we can change the numbers in A1 and A2 cells to see the immediate impact of the formula.

#2 Use SUM Function to Add Up Numbers

To get used to the formulas in Excel, let us start with the simple SUM function. All the formulas should begin with “+” or “=.” So, open the equal sign in cell A3.

Start typing the SUM to see the intellisense list of Excel functionsList Of Excel FunctionsExcel functions help the users to save time and maintain extensive worksheets. There are 100+ excel functions categorized as financial, logical, text, date and time, Lookup & Reference, Math, Statistical and Information functions.read more.

Press the “Tab” key once the SUM formula is selected to open the SUM function in excel.SUM Function In Excel.The SUM function in excel adds the numerical values in a range of cells. Being categorized under the Math and Trigonometry function, it is entered by typing “=SUM” followed by the values to be summed. The values supplied to the function can be numbers, cell references or ranges.read more

The first argument of the SUM function is Number 1, whichis the first number we need to add. In this example, cell A1. So, we must select cell A1.

The next argument is Number 2, the second number or item we need to add, A2 cell.

Now, we must close the bracket and press the “Enter” key to see the result of the SUM function.

Like this, we can create simple formulas in Excel to do the calculations.

#3 Create Formula References to Other Cells Excel

We have seen the basics of creating a formula in Excel. Similarly, we can apply one formula to other related cells as well. For example, look at the below data.

In column A we have “Units.” In column B, we have the “Price Per Unit.”

In the column, C needs to arrive at “Sales Amount.” For arriving at the sales amount, the formula is Units * Price.

So, we must open an equal sign in cell C2.
Select cell A2 (units).
Enter multiple sign (*) and select the B2 cell (price).
Press the “Enter” key to get the sales amount.

Now, we have applied the formula in cell C2. How about the remaining cells?

Can you enter the same formula for the remaining cells individually?

If you think that way, you will be delighted to hear that the “formula is to be applied to a single cell, then we can copy-paste to other cells.”

Now first, look at the formula we have applied.

The formula says A2 * B2.

So, when we copy and paste the formula below, cell A2 becomes A3, and B2 becomes B3.

Similarly, row numbers keep changing as we move down, and column letters will also change if we move either left or right.

Copy and paste the formula to other cells to result in all the cells.

Like this, we can create a simple formula in Excel to start your learning.