Creating Formulas

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All formulas must begin with the equal (=) sign, regardless of whether the formula consists of adding, subtracting, multiplying, or dividing. Formulas can reference either a static value or the value in a referenced cell .

Creating a Simple Formula

An example of a simple formula is to add two cell values together. For example, you could elect to add the values of B7 and B8.

NOTE

Worksheet formulas are not case sensitive. For example, B7 is the same as b7.

A formula needs an operator to suggest the next action to be performed. Operators are plus (+), minus (-), multiply (*), or divide (/) symbols.

Creating a Compound Formula

You use compound formulas when you need more than one operator. Examples of a compound formula might be =B7+B8+B9+B10 or =B11-B19*A23.

NOTE

When you have a compound formula, Excel will do the multiplication and division first, then the addition and subtraction. If you want a certain portion of the formula to be calculated first, put it in parentheses. Excel will do whatever is in the parentheses before the rest of the formula. For example, the formula =B11-B19*A23 will give a totally different answer than =(B11-B19)*A23.

Try changing one of the values you originally typed in the worksheet and watch the answer to the formula change.

NOTE

Excel also provides more complex formulas, called Functions, that can perform statistical, financial, mathematical, and many other types of calculations. You'll learn about Functions in Chapter 7, "Using Excel Functions."

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