Formulas and Functions

Enter a Formula | Edit a Formula | Operator Precedence | Copy/Paste a Formula | Insert a

Function
A formula is an expression which calculates the value of a cell. Functions are predefined
formulas and are already available in Excel.
For example, cell A3 below contains a formula which adds the value of cell A2 to the value of
cell A1.

For example, cell A3 below contains the SUM function which calculates the sum of the range
A1:A2.

Enter a Formula
To enter a formula, execute the following steps.
1. Select a cell.
2. To let Excel know that you want to enter a formula, type an equal sign (=).
3. For example, type the formula A1+A2.

Tip: instead of typing A1 and A2, simply select cell A1 and cell A2.
4. Change the value of cell A1 to 3.
Excel automatically recalculates the value of cell A3. This is one of Excel's most powerful
features!

Edit a Formula
When you select a cell, Excel shows the value or formula of the cell in the formula bar.

1. To edit a formula, click in the formula bar and change the formula.

2. Press Enter.

Operator Precedence
Excel uses a default order in which calculations occur. If a part of the formula is in parentheses,
that part will be calculated first. It then performs multiplication or division calculations. Once this
is complete, Excel will add and subtract the remainder of your formula. See the example below.

First, Excel performs multiplication (A1 * A2). Next, Excel adds the value of cell A3 to this result.
Another example,
First, Excel calculates the part in parentheses (A2+A3). Next, it multiplies this result by the value
of cell A1.
Copy/Paste a Formula
When you copy a formula, Excel automatically adjusts the cell references for each new cell the
formula is copied to. To understand this, execute the following steps.
1. Enter the formula shown below into cell A4.

2a. Select cell A4, right click, and then click Copy (or press CTRL + c)...

...next, select cell B4, right click, and then click Paste under 'Paste Options:' (or press CTRL +
v).

2b. You can also drag the formula to cell B4. Select cell A4, click on the lower right corner of cell
A4 and drag it across to cell B4. This is much easier and gives the exact same result!
Result. The formula in cell B4 references the values in column B.

Insert a Function
Every function has the same structure. For example, SUM(A1:A4). The name of this function is
SUM. The part between the brackets (arguments) means we give Excel the range A1:A4 as
input. This function adds the values in cells A1, A2, A3 and A4. It's not easy to remember which
function and which arguments to use for each task. Fortunately, the Insert Function feature in
Excel helps you with this.
To insert a function, execute the following steps.
1. Select a cell.
2. Click the Insert Function button.

The 'Insert Function' dialog box appears.

3. Search for a function or select a function from a category. For example, choose COUNTIF
from the Statistical category.

4. Click OK.
The 'Function Arguments' dialog box appears.
5. Click in the Range box and select the range A1:C2.
6. Click in the Criteria box and type >5.
7. Click OK.

Result. The COUNTIF function counts the number of cells that are greater than 5.

Note: instead of using the Insert Function feature, simply type =COUNTIF(A1:C2,">5"). When
you arrive at: =COUNTIF( instead of typing A1:C2, simply select the range A1:C2.
Count and Sum Functions

Count | Countif | Countifs | Sum | Sumif | Sumifs

The most used functions in Excel are the functions that count and sum. You can count and sum
based on one criteria or multiple criteria.
Count
To count the number of cells that contain numbers, use the COUNT function.

Countif
To count cells based on one criteria (for example, greater than 9), use the following COUNTIF
function.
Note: visit our page about the COUNTIF function for many more examples.
Countifs
To count cells based on multiple criteria (for example, green and greater than 9), use the
following COUNTIFS function.

Sum
To sum a range of cells, use the SUM function.

Sumif
To sum cells based on one criteria (for example, greater than 9), use the following SUMIF
function (two arguments).
To sum cells based on one criteria (for example, green), use the following SUMIF function
(three arguments, last argument is the range to sum).

Note: visit our page about the SUMIF function for many more examples.
Sumifs
To sum cells based on multiple criteria (for example, circle and red), use the following SUMIFS
function (first argument is the range to sum).

General note: in a similar way, you can use the AVERAGEIF and AVERAGEIFS function to
average cells based on one or multiple criteria.
Logical Functions

If Function | And Function | Or Function

Learn how to use Excel's logical functions such as the IF, AND and OR function.
If Function
The IF function checks whether a condition is met, and returns one value if TRUE and another
value if FALSE.
1. Select cell C1 and enter the following function.

The IF function returns Correct because the value in cell A1 is higher than 10.
And Function
The AND Function returns TRUE if all conditions are true and returns FALSE if any of the
conditions are false.
1. Select cell D1 and enter the following formula.

The AND function returns FALSE because the value in cell B1 is not higher than 5. As a result
the IF function returns Incorrect.
Or Function
The OR function returns TRUE if any of the conditions are TRUE and returns FALSE if all
conditions are false.
1. Select cell E1 and enter the following formula.

The OR function returns TRUE because the value in cell A1 is higher than 10. As a result the IF
function returns Correct.
General note: the AND and OR function can check up to 255 conditions.
Cell References

Relative Reference | Absolute Reference | Mixed Reference

Cell references in Excel are very important. Understand the difference between relative,
absolute and mixed reference, and you are on your way to success.
Relative Reference
By default, Excel uses relative reference. See the formula in cell D2 below. Cell D2 references
(points to) cell B2 and cell C2. Both references are relative.
1. Select cell D2, click on the lower right corner of cell D2 and drag it down to cell D5.

Cell D3 references cell B3 and cell C3. Cell D4 references cell B4 and cell C4. Cell D5
references cell B5 and cell C5. In other words: each cell references its two neighbors on the left.
Absolute Reference
See the formula in cell E3 below.
1. To create an absolute reference to cell H3, place a $ symbol in front of the column letter and
row number ($H$3) in the formula of cell E3.

2. Now we can quickly drag this formula to the other cells.

The reference to cell H3 is fixed (when we drag the formula down and across). As a result, the
correct lengths and widths in inches are calculated.
Mixed Reference
Sometimes we need a combination of relative and absolute reference (mixed reference).
1. See the formula in cell F2 below.

2. We want to copy this formula to the other cells quickly. Drag cell F2 across one cell, and look
at the formula in cell G2.

Do you see what happens? The reference to the price should be a fixed reference to column B.
Solution: place a $ symbol in front of the column letter ($B2) in the formula of cell F2. In a
similar way, when we drag cell F2 down, the reference to the reduction should be
a fixed reference to row 6. Solution: place a $ symbol in front of the row number (B$6) in the
formula of cell F2.
Result:

Note: we don't place a $ symbol in front of the row number of $B2 (this way we allow the
reference to change from $B2 (Jeans) to $B3 (Shirts) when we drag the formula down). In a
similar way, we don't place a $ symbol in front of the column letter of B$6 (this way we allow the
reference to change from B$6 (Jan) to C$6 (Feb) and D$6 (Mar) when we drag the formula
across).
3. Now we can quickly drag this formula to the other cells.

The references to column B and row 6 are fixed.

Date & Time Functions

Year, Month, Day | Date Function | Current Date & Time | Hour, Minute, Second | Time Function
To enter a date in Excel, use the "/" or "-" characters. To enter a time, use the ":" (colon). You
can also enter a date and a time in one cell.

Note: Dates are in US Format. Months first, Days second. This type of format depends on your
windows regional settings. Learn more about Date and Time formats.
Year, Month, Day
To get the year of a date, use the YEAR function.

Note: use the MONTH and DAY function to get the month and day of a date.
Date Function
1. To add a number of days to a date, use the following simple formula.

2. To add a number of years, months and/or days, use the DATE function.
Note: the DATE function accepts three arguments: year, month and day. Excel knows that 6 + 2
= 8 = August has 31 days and rolls over to the next month (23 August + 9 days = 1 September).
Current Date & Time
To get the current date and time, use the NOW function.

Note: use the TODAY function to get the current date only. Use NOW()-TODAY() to get the
current time only (and apply a Time format).
Hour, Minute, Second
To return the hour, use the HOUR function.

Note: use the MINUTE and SECOND function to return the minute and second.
Time Function
To add a number of hours, minutes and/or seconds, use the TIME function.

Note: Excel adds 2 hours, 10 + 1 = 11 minutes and 70 - 60 = 10 seconds.

Text Functions

Join Strings | Left | Right | Mid | Len | Find | Substitute

Excel has many functions to offer when it comes to manipulating text strings.
Join Strings
To join strings, use the & operator.

Note: to insert a space, use " "

Left
To extract the leftmost characters from a string, use the LEFT function.
Right
To extract the rightmost characters from a string, use the RIGHT function.

Mid
To extract a substring, starting in the middle of a string, use the MID function.

Note: started at position 5 (p) with length 3.

Len
To get the length of a string, use the LEN function.

Note: space (position 8) included!

Find
To find the position of a substring in a string, use the FIND function.

Note: string "am" found at position 3.

Substitute
To replace existing text with new text in a string, use the SUBSTITUTE function.

Lookup & Reference Functions

VLookup | HLookup | Match | Index | Choose

Learn all about Excel's lookup & reference functions such as the VLOOKUP, HLOOKUP,
MATCH, INDEX and CHOOSE function.
VLookup
The VLOOKUP (Vertical lookup) function looks for a value in the leftmost column of a table, and
then returns a value in the same row from another column you specify.
1. Insert the VLOOKUP function shown below.

Explanation: the VLOOKUP function looks for the ID (104) in the leftmost column of the range
$E$4:$G$7 and returns the value in the same row from the third column (third argument is set to
3). The fourth argument is set to FALSE to return an exact match or a #N/A error if not found.
2. Drag the VLOOKUP function in cell B2 down to cell B11.

Note: when we drag the VLOOKUP function down, the absolute reference ($E$4:$G$7) stays
the same, while the relative reference (A2) changes to A3, A4, A5, etc. Visit our page about
the VLOOKUP function for much more information and many examples.
HLookup
In a similar way, you can use the HLOOKUP (Horizontal lookup) function.
Match
The MATCH function returns the position of a value in a given range.

Explanation: Yellow found at position 3 in the range E4:E7. The third argument is optional. Set
this argument to 0 to return the position of the value that is exactly equal to lookup_value (A2) or
a #N/A error if not found.
Index
The INDEX function below returns a specific value in a two-dimensional range.

Explanation: 92 found at the intersection of row 3 and column 2 in the range E4:F7.
The INDEX function below returns a specific value in a one-dimensional range.
Explanation: 97 found at position 3 in the range E4:E7.
Choose
The CHOOSE function returns a value from a list of values, based on a position number.

Explanation: Boat found at position 3.

Financial Functions

Pmt | Rate | Nper | Pv | Fv

To illustrate Excel's most popular financial functions, we consider a loan with monthly payments,
an annual interest rate of 6%, a 20-year duration, a present value of $150,000 (amount
borrowed) and a future value of 0 (that's what you hope to achieve when you pay off a loan).
We make monthly payments, so we use 6%/12 = 0.5% for Rate and 20*12 = 240 for Nper (total
number of periods). If we make annual payments on the same loan, we use 6% for Rate and 20
for Nper.
Pmt
Select cell A2 and insert the PMT function.

Note: The last two arguments are optional. For loans the Fv can be omitted (the future value of
a loan equals 0, however, it's included here for clarification). If Type is omitted, it is assumed
that payments are due at the end of the period.
Result. The monthly payment equals $1,074.65.
Tip: when working with financial functions in Excel, always ask yourself the question, am I
making a payment (negative) or am I receiving money (positive)? We pay off a loan of $150,000
(positive, we received that amount) and we make monthly payments of $1,074.65 (negative, we
pay).
Rate
If Rate is the only unknown variable, we can use the RATE function to calculate the interest
rate.

Nper
Or the NPER function. If we make monthly payments of $1,074.65 on a 20-year loan, with an
annual interest rate of 6%, it takes 240 months to pay off this loan.

We already knew this, but we can change the monthly payment now to see how this affects the
total number of periods.

Conclusion: if we make monthly payments of $2,074.65, it takes less than 90 months to pay off
this loan.
Pv
Or the PV (Present Value) function. If we make monthly payments of $1,074.65 on a 20-year
loan, with an annual interest rate of 6%, how much can we borrow? You already know the
answer.
Fv
And we finish this chapter with the FV (Future Value) function. If we make monthly payments of
$1,074.65 on a 20-year loan, with an annual interest rate of 6%, do we pay off this loan? Yes.

But, if we make monthly payments of only $1,000.00, we still have debt after 20 years.

Statistical Functions

Average | Averageif | Median | Mode | Standard Deviation | Min | Max | Large | Small
This chapter gives an overview of some very useful statistical functions in Excel.
Average
To calculate the average of a range of cells, use the AVERAGE function.

Averageif
To average cells based on one criteria, use the AVERAGEIF function. For example, to calculate
the average excluding zeros.
Note: <> means not equal to. The AVERAGEIF function is similar to the SUMIF function.
Median
To find the median (or middle number), use the MEDIAN function.

Check:

Mode
To find the most frequently occurring number, use the MODE function.

Standard Deviation
To calculate the standard deviation, use the STEDV function.

Note: standard deviation is a number that tells you how far numbers are from their mean. Learn
more about this topic on our page about standard deviation.
Min
To find the minimum value, use the MIN function.

Max
To find the maximum value, use the MAX function.
Large
To find the third largest number, use the following LARGE function.

Check:

Small
To find the second smallest number, use the following SMALL function.

Check:

Tip: Excel can generate most of these results with the click of a button. Our Descriptive
Statistics example shows you how.

Round

Round | RoundUp | RoundDown

This chapter illustrates three functions to round numbers in Excel. The
ROUND, ROUNDUP and ROUNDDOWNfunction.
Before your start: if you round a number, you lose precision. If you don't want this, show
fewer decimal placeswithout changing the number itself.
Round
1. Round a number to two decimal places.
Note: 1, 2, 3, and 4 get rounded down. 5, 6, 7, 8, and 9 get rounded up. In this example,
114.7211, 114.7221, 114.7231 and 114.7241 get rounded down to 114.72 and 114.7251,
114.7261, 114.7271, 114.7281 and 114.7291 get rounded up to 114.73.
2. Round a number to one decimal place.

3. Round a number to the nearest integer.

4. Round a number to the nearest 10.

5. Round a number to the nearest 100.

RoundUp
The ROUNDUP function always rounds a number up (away from zero). For example, round a
number up to one decimal place.
RoundDown
The ROUNDDOWN function always rounds a number down (toward zero). For example, round
a number down to the nearest integer.

Formula Errors

##### error | #NAME? error | #VALUE! error | #DIV/0! error | #REF! error
This chapter teaches you how to deal with some common formula errors in Excel.
##### error
When your cell contains this error code, the column isn't wide enough to display the value.

1. Click on the right border of the column A header and increase the column width.

Tip: double click the right border of the column A header to automatically fit the widest cell in
column A.
#NAME? error
The #NAME? error occurs when Excel does not recognize text in a formula.
1. Simply correct SU to SUM.

#VALUE! error
Excel displays the #VALUE! error when a formula has the wrong type of argument.

1a. Change the value of cell A3 to a number.

1b. Use a function to ignore cells that contain text.

#DIV/0! error
Excel displays the #DIV/0! error when a formula tries to divide a number by 0 or an empty cell.
1a. Change the value of cell A2 to a value that is not equal to 0.
1b. Prevent the error from being displayed by using the logical function IF.

Explanation: if cell A2 equals 0, an empty string ("") is displayed. If not, the result of the formula
A1/A2 is displayed.
#REF! error
Excel displays the #REF! error when a formula refers to a cell that is not valid.
1. Cell C1 references cell A1 and cell B1.

2. Delete column B. To achieve this, right click the column B header and click Delete.

3. Select cell B1. The reference to cell B1 is not valid anymore.

4. To fix this error, you can either delete +#REF! in the formula of cell B1 or you can undo your
action by pressing CTRL + z
Array Formulas

Without Array Formula | With Array Formula | F9 Key

This chapter helps you understand array formulas in Excel. Single cell array formulas perform
multiple calculations in one cell.
Without Array Formula
Without using an array formula, we would execute the following steps to find the greatest
progress.
1. First, we would calculate the progress of each student.

2. Next, we would use the MAX function to find the greatest progress.

With Array Formula

We don't need to store the range in column D. Excel can store this range in its memory. A range
stored in Excel's memory is called an array constant.
1. We already know that we can find the progress of the first student by using the formula
below.
2. To find the greatest progress (don't be overwhelmed), we add the MAX function, replace C2
with C2:C6 and B2 with B2:B6.

3. Finish by pressing CTRL + SHIFT + ENTER.

Note: The formula bar indicates that this is an array formula by enclosing it in curly braces {}. Do
not type these yourself. They will disappear when you edit the formula.
Explanation: The range (array constant) is stored in Excel's memory, not in a range. The array
constant looks as follows:
{19;33;63;48;13}
This array constant is used as an argument for the MAX function, giving a result of 63.
F9 Key
When working with array formulas, you can have a look at these array constants yourself.
1. Select C2:C6-B2:B6 in the formula.
2. Press F9.

That looks good. Elements in a vertical array constant are separated by semicolons. Elements
in a horizontal array constant are separated by commas.