Excel Simple Formulas

Introduction

One of the most powerful features in Excel is the ability to calculate numerical information using formulas. Just like a calculator, Excel can add, subtract, multiply, and divide. In this lesson, we'll show you how to use cell references to create simple formulas.

Mathematical operators

Excel uses standard operators for formulas, such as a plus sign for addition (+), a minus sign for subtraction (-), an asterisk for multiplication (*), a forward slash for division (/), and a caret (^) for exponents.

All formulas in Excel must begin with an equals sign (=). This is because the cell contains, or is equal to, the formula and the value it calculates.

Understanding cell references

While you can create simple formulas in Excel manually (for example, =2+2 or =5*5), most of the time you will use cell addresses to create a formula. This is known as making a cell reference. Using cell references will ensure that your formulas are always accurate because you can change the value of referenced cells without having to rewrite the formula.

By combining a mathematical operator with cell references, you can create a variety of simple formulas in Excel. Formulas can also include a combination of cell references and numbers, as in the examples below:

To create a formula:

In our example below, we'll use a simple formula and cell references to calculate a budget.

1. Select the cell that will contain the formula. In our example, we'll select cell B3.
   
2. Type the equals sign (=). Notice how it appears in both the cell and the formula bar.
   
3. Type the cell address of the cell you want to reference first in the formula: cell B1 in our example. A blue border will appear around the referenced cell.
   
4. Type the mathematical operator you want to use. In our example, we'll type the addition sign (+).
5. Type the cell address of the cell you want to reference second in the formula: cell B2 in our example. A red border will appear around the referenced cell.
   
   
   
6. Press Enter on your keyboard. The formula will be calculated, and the value will be displayed in the cell.
   

If the result of a formula is too large to be displayed in a cell, it may appear as pound signs (#######) instead of a value. This means the column is not wide enough to display the cell content. Simply increase the column width to show the cell content.

Modifying values with cell references

The true advantage of cell references is that they allow you to update data in your worksheet without having to rewrite formulas. In the example below, we've modified the value of cell B1 from $1,200 to $1,800. The formula in B3 will automatically recalculate and display the new value in cell B3.

Excel will not always tell you if your formula contains an error, so it's up to you to check all of your formulas. To learn how to do this, you can read the Double-Check Your Formulas lesson from our Excel Formulas tutorial.

To create a formula using the point-and-click method:

Rather than typing cell addresses manually, you can point and click on the cells you want to include in your formula. This method can save a lot of time and effort when creating formulas. In our example below, we'll create a formula to calculate the cost of ordering several boxes of plastic silverware.

1. Select the cell that will contain the formula. In our example, we'll select cell D3.
   
2. Type the equals sign (=).
3. Select the cell you want to reference first in the formula: cell B3 in our example. The cell address will appear in the formula, and a dashed blue line will appear around the referenced cell.
   
4. Type the mathematical operator you want to use. In our example, we'll type the multiplication sign (*).
5. Select the cell you want to reference second in the formula: cell C3 in our example. The cell address will appear in the formula, and a dashed red line will appear around the referenced cell.
   
6. Press Enter on your keyboard. The formula will be calculated, and the value will be displayed in the cell.
   

Formulas can also be copied to adjacent cells with the fill handle, which can save a lot of time and effort if you need to perform the same calculation multiple times in a worksheet. Review our lesson on Relative and Absolute Cell References to learn more.

To edit a formula:

Sometimes you may want to modify an existing formula. In the example below, we've entered an incorrect cell address in our formula, so we'll need to correct it.

1. Select the cell containing the formula you want to edit. In our example, we'll select cell B3.
   
   
   
2. Click the formula bar to edit the formula. You can also double-click the cell to view and edit the formula directly within the cell.
   
3. A border will appear around any referenced cells. In our example, we'll change the second part of the formula to reference cell B2 instead of cell C2.
   
   
   
4. When you're finished, press Enter on your keyboard or click the checkmark in the formula bar.
   
   
   
5. The formula will be updated, and the new value will be displayed in the cell.
   

If you change your mind, you can press the Esc key on your keyboard to avoid accidentally making changes to your formula.

To show all of the formulas in a spreadsheet, you can hold the Ctrl key and press ` (grave accent). The grave accent key is usually located in the top-left corner of the keyboard. You can press Ctrl+` again to switch back to the normal view.

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Getting Started with Excel

Introduction

Excel is a spreadsheet program that allows you to store, organize, and analyze information. In this lesson, you will learn your way around the Excel 2010 environment, including the new Backstage view, which replaces the Microsoft Office button menu from Excel 2007.

We will show you how to use and modify the Ribbon and the Quick Access toolbar, as well as how to create new workbooks and open existing ones. After this lesson, you will be ready to get started on your first workbook.

Getting to know Excel 2010

Video: Navigating Excel 2010

The Excel 2010 interface is similar to Excel 2007. There have been some changes we'll review later in this lesson, but if you're new to Excel first take some time to learn how to navigate an Excel workbook.

The Excel interface

Click the buttons in the interactive below for an overview of how to navigate an Excel workbook.

Working with your Excel environment

Video: Exploring Your Excel 2010 Environment

The Ribbon and Quick Access toolbar are where you'll find the commands you need to perform common tasks in Excel. If you are familiar with Excel 2007, you will find that the main difference in the Excel 2010 Ribbon is that commands such as Open and Print are now housed in Backstage view.

The Ribbon

The Ribbon contains multiple tabs, each with several groups of commands. You can add your own tabs that contain your favorite commands.

Certain programs—such as Adobe Acrobat Reader—may install additional tabs to the Ribbon. These tabs are called add-ins.

To customize the Ribbon:

You can customize the Ribbon by creating your own tabs that house your desired commands. Commands are always housed within a group, and you can create as many groups as you need to keep your tabs organized. You can also add commands to any of the default tabs as long as you create a custom group within the tab.

1. Right-click the Ribbon, then select Customize the Ribbon. A dialog box will appear.
   
2. Click New Tab. A new tab will be created with a new group inside it.
3. Make sure the new group is selected.
4. Select a command from the list on the left, then click Add. You can also drag commands directly into a group.
5. When you are done adding commands, click OK.
   
   
   

If you do not see the command you want, click the Choose commands drop-down box and select All Commands.

To minimize and maximize the Ribbon:

The Ribbon is designed to be easy to use and responsive to your current tasks; however, if you find that it's taking up too much of your screen space, you can minimize it.

1. Click the arrow in the upper-right corner of the Ribbon to minimize it.
   
2. To maximize the Ribbon, click the arrow again.

When the Ribbon is minimized, you can make it reappear by clicking a tab. However, the Ribbon will disappear again when you're not using it.

The Quick Access toolbar

The Quick Access toolbar, above the Ribbon, lets you access common commands no matter which tab you are on. By default, it shows the Save, Undo, and Repeat commands. You can add other commands to make it more convenient for you.

To add commands to the Quick Access toolbar:

1. Click the drop-down arrow to the right of the Quick Access toolbar.
2. Select the command you want to add from the drop-down menu. To choose from more commands, select More Commands.
   

Backstage view

Backstage view gives you various options for saving, opening a file, printing, and sharing your document. It is similar to the Microsoft Office button menu from Excel 2007 and the File menu from earlier versions of Excel. However, instead of just a menu it's a full-page view, which makes it easier to work with.

To get to Backstage view:

1. On the Ribbon, click the File tab.
   
2. Choose your desired option, or return to your workbook by clicking any tab on the Ribbon.

Click the buttons in the interactive below to learn about the different things you can do in Backstage view.

Creating and opening workbooks

Video:Creating Workbooks in Excel 2010

Excel files are called workbooks. Each workbook holds one or more worksheets (also known as spreadsheets).

To create a new blank workbook:

1. Click the File tab. This takes you to Backstage view.
2. Select New.
3. Select Blank workbook under Available Templates. It will be highlighted by default.
4. Click Create. A new blank workbook appears in the Excel window.
   

To save time, you can create your document from a template, which you can select under Available Templates. We'll talk more about this in a later lesson.

To open an existing workbook:

1. Click the File tab. This takes you to Backstage view.
2. Select Open. The Open dialog box appears.
   
3. Select your desired workbook, then click Open.

If you have opened the existing workbook recently, it may be easier to choose Recent from the File tab instead of Open to search for your workbook.

Compatibility mode

Sometimes you may need to work with workbooks that were created in earlier versions of Microsoft Excel, such as Excel 2003 or Excel 2000. When you open these types of workbooks, they will appear in Compatibility mode.

Compatibility mode disables certain features, so you'll only be able to access commands found in the program that was used to create the workbook. For example, if you open a workbook created in Excel 2003 you can only use tabs and commands found in Excel 2003.

In the image below, the workbook has opened in Compatibility mode. You can see that the sparklines and slicers features have been disabled.

To exit Compatibility mode, you'll need to convert the workbook to the current version type. However, if you're collaborating with others who only have access to an earlier version of Excel, it's best to leave the workbook in Compatibility mode so the format will not change.

To convert a workbook:

If you want access to all of the Excel 2010 features, you can convert the workbook to the 2010 file format.

Note that converting a file may cause some changes to the original layout of the workbook.

1. Click the File tab to access Backstage view.
2. Locate and select the Convert command.
   
3. The Save As dialog box will appear. Select the location where you want to save the workbook, enter a file name for the presentation, and click Save.
   
   
   
4. The workbook will be converted to the newest file type.