Formula Basics

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Part of Excel

Anatomy of a Formula

Every formula starts with = followed by a combination of operators, values, cell references, and functions.

=SUM(A1:A10)*1.18

Operators

Arithmetic

OperatorMeaningExample
+Addition=A1+B1
-Subtraction=A1-B1
*Multiplication=A1*B1
/Division=A1/B1
^Exponent=A1^2
%Percent=50%

Comparison

OperatorMeaning
=Equal to
<>Not equal to
> <Greater / less than
>= <=Greater/less than or equal to

Text

OperatorMeaningExample
&Concatenate=A1&" "&B1

Cell References

Relative vs Absolute vs Mixed

  • Relative A1 — shifts when copied
  • Absolute $A$1 — locked row and column
  • Mixed $A1 or A$1 — locks only column or only row
  • Press F4 to cycle through reference types while editing a formula

Referencing Other Sheets & Workbooks

=Sheet2!A1
='Sheet Name With Spaces'!A1
=[Workbook.xlsx]Sheet1!A1

Named Ranges

  • Define via Formulas → Define Name or Ctrl+F3
  • Usable directly in formulas: =SUM(SalesData)
  • Scope can be Workbook or Sheet-level

Order of Operations (PEMDAS)

  1. Parentheses ()
  2. Exponents ^
  3. Multiplication / Division (left to right)
  4. Addition / Subtraction (left to right)

Array vs Regular Formulas

  • Legacy array formulas entered with Ctrl+Shift+Enter (CSE) — shown as {=FORMULA}
  • Modern Excel (365) uses dynamic arrays natively — see Array & Dynamic Array Functions

Common Gotcha

Circular references (a formula that refers to its own cell, directly or indirectly) throw a warning. Enable iterative calculation only if intentional (e.g. goal-seek style models).

See Also