1.

Arithmetic Formulas

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

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.

2. Cell References

While you can create simple formulas in Excel using numbers (for example, =1+1 or
=3*3), 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.

In the formula below, cell A3 adds the values of cells A1 and A2 by making cell
references:

When you press Enter, the formula calculates and displays the answer in cell A3:

If the values in the referenced cells change, the formula automatically recalculates:

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:
2.1. To create a formula:
In the example below, we will use a simple formula and cell references to calculate a
budget.

Download this practice file and be guided by the steps below:

1.  Select the cell that will contain the formula. In the example, select cell D12.

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 D10 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 D11 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 you select the cell again, notice that the cell displays the result,
while the formula bar displays the formula. 
NOTE: 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 (Alt + H + O + I)
to show the cell content.

Source: https://edu.gcfglobal.org/en/excel/

2.2. 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 D10 from $1,200 to $1,800. The formula in D12 will automatically
recalculate and display the new value in cell D12.

NOTE: Excel will not always tell you if your formula contains an error, so it's up to you
to check all of your formulas. 

Source: https://edu.gcfglobal.org/en/excel/

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

Instead of typing cell addresses manually, you can point and click the cells you want to
include in your formula. This method can save a lot of time and effort when creating
formulas. In the example below, you will 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 D4.

2. Type the equals sign (=).

3. Select the cell you want to reference first in the formula: cell B4 in our example.
The cell address will appear in the formula.

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 C4 in our example.
The cell address will appear in the formula.

6.      Press Enter on your keyboard. The formula will be calculated, and the value will

be displayed in the cell.

2.4. Copying formulas with the fill handle

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. The fill handle is the small square at the bottom-right corner of the selected
cell(s).

1. Select the cell containing the formula you want to copy. Click and drag the fill
handle over the cells you want to fill.

2. After you release the mouse, the formula will be copied to the selected cells.

2.5. 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 D12.
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
first part of the formula to reference cell D10 instead of cell D9.

4. When you're finished, press Enter on your keyboard or select the Enter command 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 or click
the Cancel command in the formula bar 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.

3. Common Functions
There are a variety of functions available in Excel. Here are some of the most common
functions you will use:

3.1. SUM FUNCTION

WHAT IS THIS FUNCTION FOR?
Sum Function’s main purpose is to ADD (to sum) all the values that you want. You do
that by manually inserting the CELLS into the formula.

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

You can use Excel as a calculator AND you can “drag” the formula to automatically
perform more sums in another part of the spreadsheet. In simple words, you can write
one formula and perform 10, 20, or 100 calculations in no time!

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the SUM function is the next one:

=SUM(cell1,cell2,cell3,cell4,….)

Or

=SUM(Cell1:Cell20)

WHAT DOES THAT MEAN?

=SUM(cell1,cell2,cell3,cell4,….) means that you can insert to the formula the name of
one cell (by example A1), then separate that by a comma “,” and insert another cell (by
example A2).

=SUM(A1,A2) means that you want to sum the value in A1 plus the value in A2.

=SUM(Cell1:Cell20) means that you can also insert a “Range” (a matrix) to the formula
to sum the whole bunch of values within that range.

The first part of the range needs to be the upper-left cell, then separated by a double
period “:” and the second part of the range is the bottom-right cell.

=SUM(A1:C20) would mean that you want to sum ALL THE VALUES within that range.
The values of that range are from A1 to A2, from B1 to B20, and from C1 to C20. (60
cells in total)
3.2. AVERAGE FUNCTION
WHAT IS THIS FUNCTION FOR?
Its main purpose is to average a set of values in many cells. It can handle up to 255
values to average per formula.

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

You can average quickly and clone the formula (dragging it) so have multiple averages.

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the AVERAGE function is the next one:

=AVERAGE(cell1,cell2,cell3,cell4,….)

Or

=AVERAGE(Cell1:Cell20)

WHAT DOES THAT MEAN?

It functions like the SUM function (the structure is very similar) but instead of adding, it
will calculate the Average.

3.3. MIN FUNCTION

WHAT IS THIS FUNCTION FOR?
Its main purpose is to find and return the lowest value within a set of cells (normally a
range of cells)

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

You can get multiple lowest values and the same time.

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the MIN function is the next one:

=MIN(cell1,cell2,cell3,cell4,….)
Or

=MIN(Cell1:Cell20)

WHAT DOES THAT MEAN?

It operates like the AVERAGE function (the structure is very similar) but instead of
getting the average, it will return the lowest value.

3.4. MAX FUNCTION

WHAT IS THIS FUNCTION FOR?
Its main purpose is to find and return the greatest value within a set of cells (normally a
range of cells)

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

You can get multiple greatest values in no time.

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the MAX function is the next one:

=MAX(cell1,cell2,cell3,cell4,….)

Or

=MAX(Cell1:Cell20)

WHAT DOES THAT MEAN?

It is almost exactly the same as MIN function) but instead of getting the lowest value, it
will return the greatest value.
3.5. COUNT FUNCTION
WHAT IS THIS FUNCTION FOR?
Its main purpose is to count the number of cells that have some value written in them
(and ignore the empty ones) within a range, and to return the total amount. It counts
cells with numbers and text at the same time.

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

It is used to find the number of cells that have something written.

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the COUNT function is the next one:

=COUNT(cell1,cell2,cell3,cell4,….)

Or

=COUNT(Cell1:Cell20)

WHAT DOES THAT MEAN?

It is almost exactly the same as MIN, MAX, and SUM functions. It will return the number
of full cells within a range.

3.6. SUBTOTAL FUNCTION

WHAT IS THIS FUNCTION FOR?
Its main purpose is to be a flexible function with which you can choose between
different arithmetic operations (such as SUM, AVERAGE, MIN, MAX, COUNT) within
the same function!

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

You can change the arithmetic operation you want to perform without having to write
another function.

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the SUBTOTAL function is the next one:
=SUBTOTAL(Function number,cells)

WHAT DOES THAT MEAN?

Argument 1 Function number: You can choose between different arithmetic operations
using the “Function Number” that corresponds to the one that you want.

The most used are the following:

NUMBER 1 FOR AVERAGE

NUMBER 2 FOR COUNT

NUMBER 4 FOR MAX

NUMBER 5 FOR MIN

NUMBER 9 FOR SUM

As you can notice, these functions are already mentioned previously, but with
SUBTOTAL you can have all of them at once

3.7. PRODUCT FUNCTION

WHAT IS THIS FUNCTION FOR?
Its main purpose is to multiply values in the cells you choose

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

You can multiply more than two values at the same time. All the values within the range
will be multiplied.

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the PRODUCT function is the next one:

=PRODUCT(cell1,cell2,cell3,cell4,….)

Or

=PRODUCT(Cell1:Cell20)
WHAT DOES THAT MEAN?
You can multiply more than two values. You can insert the values as independent cells
or as a range.

3.8. SUMPRODUCT FUNCTION

WHAT IS THIS FUNCTION FOR?
Its main purpose is to sum the results AFTER it multiplied some values. So, the function
performs numerous multiplications first, and after that it sums all the results

WHICH IS THE MAIN BENEFIT OF THIS FORMULA?

Instead of using PRODUCT and then SUM… you can use SUMPRODUCT instead.

HOW IS THIS FUNCTION STRUCTURED?

The syntax (Structure) of the SUMPRODUCT function is the next one:

=SUMPRODUCT(range1,range2,range3…etc)

WHAT DOES THAT MEAN?

Suppose that you just have 2 VERTICAL RANGES. So Range 1 will have the numbers
3,4,5 and Range 2 will have 8,6,7.

RANGE 1 RANGE 2
3 8
4 6
5 7

1. The first value of Range 1 will be multiplied by the first value of Range 2 (3*8)
2. The second value of Range 1 will be multiplied by the second of Range 2 (4*6)
3. The third value of Range 1 will be multiplied by the third of Range 2 (5*7)
4. In the end, the formula will SUM the result of all those 3 multiplications. That
would be 83