Intro to Formulas
Learn how to create basic formulas in Excel using cell references, mathematical operators, and the fill handle.
Video
Watch the lesson video, then complete the reading and challenge.
Lesson Notes
Read through the key concepts before you try the challenge.
What Is a Formula?
A formula is an equation that performs calculations in a worksheet. All formulas in Excel must begin with an equals sign (=).
Excel can add, subtract, multiply, divide, and calculate exponents using standard mathematical operators.
Understanding Cell References
Instead of typing numbers directly into formulas, Excel typically uses cell references. A cell reference identifies the location of data in the worksheet, such as A1 or D10.
Using references allows formulas to automatically update when the referenced data changes.
Common Formula Examples
Creating a Basic Formula
To create a formula, select the cell where you want the result to appear, type an equals sign (=), then enter the cell references and operator.
In this example, we calculate a total budget by adding two cells together.
Editing a Formula
To modify a formula, select the cell and click inside the formula bar, or double-click the cell to edit directly.
Using the Point-and-Click Method
Instead of typing cell addresses manually, you can click the cells you want to include in the formula. This reduces errors and increases accuracy.
Copying Formulas with the Fill Handle
Formulas can be copied to adjacent cells using the fill handle. This small square appears in the bottom-right corner of a selected cell.
Practical Invoice Example
In real-world spreadsheets, formulas are often used to calculate totals such as invoices, budgets, or payroll.
Knowledge Check
How must every Excel formula begin?
Practice File
Download this file and follow along with the lesson.
Challenge
Apply what you've learned in this lesson.
Complete the following tasks in the practice workbook:
- Create a formula in cell D4 that multiplies Quantity by Price per Unit.
- Use the fill handle to copy the formula to remaining rows.
- Edit one price value and verify that totals update automatically.
- Create a formula that adds two budget values together.
- Show all formulas using Ctrl + ` and then return to normal view.