Formulas in Excel use functions, cell references, operators, and constants to perform calculations within a worksheet. Functions are predefined formulas that consist of a name, arguments, and category. Cell references identify cells using column letters and row numbers. Operators specify the type of calculation to perform, such as addition or comparison. Formulas allow users to analyze and manipulate data in Excel.

1. Formula
• Formulas are equations that perform
calculations in your worksheet.
• A formula consists of the following:
Starts with an equal sign
Functions
References
Operators
Constants
Example 1: =C5 * 3
Example 1: =C5 * SUM(E5:E9)

2. Functions
• Functions are predefined formula. Functions consist of the
following:
 Name – Every function is identified by a unique name.
 Arguments – Functions are specific values that a function
requires. Arguments can be number, text, logical values such
as TRUE or FALSE, Cell references, constants etc.
 Category – Functions belong to a category. Some of the
categories are:
Financial
Mathematical & trigonometry
Statistical
Logical etc…
 Tooltip – are guidelines on how to use a function. They
appear when a user types in the function name.

3. Functions
Example:
 Click on formula tab and click on cell D57.
 Type in the following formula
=SUM(D21:D56)
 Click on cell D58 and type in the following formula
=COUNTA(D21:D56)
 Click on cell D59 and type in the following formula
=MAX(D21:D56)
 Click on cell D59 and type in the following formula
=MIN(D21:D56)
 Click on cell D61 and type in the following formula
=AVERAGE(D21:D56)

4. References
• References are cell address. A cell in Excel is identified by the
column letter and row number.
Example: B2
• A worksheet consists of:
 Columns A to XFD
 Rows 1 to 1048576 (one million forty eight thousand five
hundred and seventy six rows)

5. References
To refer to Use
All cells in row 5 5:5
All cells in column H H:H
All cells in row 5 to 7 5:7
All cells in column H and J H:j

6. References
• References can be broadly classified into 3 categories:
 Relative references
 Absolute references
 Mixed references
Example:
 Open exercises excel folder
 Click on formula tab
 Copy paste numbers into internet and newspaper column
 Copy paste numbers into TV and magazine column
 Type in following formula in Total column =SUM(F5:G5)
 Copy and paste the formulas to other cells in the column.
This is relative cell referencing.

7. References
 On cell F2 type in Commission
 On cell G2 type in .08
 Add a new column after the Total column and name it Total +
Commission
 Type the following formula in cell I5
=(H5*$G$2)+H5
 Copy the formula to other cells.
This is absolute cell referencing

8. References
 Using Names in formula
• Names are labels that can be used in Excel. Names are used to
make it easy for users to refer to cell references.
• Names are managed (created, edited, deleted) using the Name
Manager.
• Example:
 Click on Advanced formatting tab.
 Select cells E2:E37.
 Click on Formula tab > Defined Names (subgroup) > Click on Name
Manager icon. A dialog box opens.
 Click on New button. A dialog box opens.
 Type in Radio in the name field and click OK.
 Close dialog box.
 Click on formula worksheet tab.
 Click on cell I18 and type in the following formula =SUM(RADIO)
 Note the formula adds the revenue column from the other sheet.

9. Operators
• Operators identify the type of operation to be performed.
• Operators can be categorized into four groups:
Arithmetic Operator :
+, -, *, / (division), % (percent), ^ (caret)
Comparison operator
 = , >, < (greater than), >= (greater than or
equal to), <= (less than or equal to), <> (not
equal)
Text Concatenation operator
& (ampersand)
Reference operators Space
: (reference operator), , (union), (intersection)

10. Operators
• Use of comma: =SUM(B5:B15,D5:D15)
• Use of intersection operator: =(B7:D7 C6:C8)
Operator precedence
1) Brackets
2) :
3) Single space
4) ,
5) -
6) %
7) ^
8) * and /
9) + and –
10) &
11) = < > <= >= <>
Compute the following value: 2^4/2-4*3+15