## How to Create a Formula in Excel?

Excel is full of formulas and those who master those formulas are Pros of Excel. Probably at the start of the learning of excel everybody curious to know how to apply formulas or create formulas in Excel. If you are one of them who are willing to learn how to create formulas in excel, then this article is best suited for you. This article will have a complete guide from zero to intermediate level formula application in excel.

### Create Simple Formula in Excel – Step by Step

To start off with excel formulas lets create simple calculator type formula of adding up numbers. Look at the below data of numbers.

In cell A1 we have 25 and in the cell, A2 cell has 40 as the numbers.

In cell A3 we need the summation of these two number.

In Excel to start the formula always put equal sign first.

Now enter 25 + 40 as the equation.

This is very similar to what we do in the calculator, isn’t it??

Press enter key to get the total of these numbers.

So, 25 + 40 is 65 and the same we got in cell A3.

#### Example #1 – Create the Formula Flexible with Cell References in Excel

From the above example, I will change the number from 25 to 30 and 40 to 50.

Even though we have changed numbers in cell A1 & A2 our formula is still showing the old result of 65 only.

4.9 (1,353 ratings)

This what the problem with direct number passing to the formula, this doesn’t make the formula to be flexible enough to update the new result.

To overcome this issue, we can give cell reference as the formula reference.

Open equal sign in cell A3.

Select cell A1.

Put Plus (+) sign and select cell A2.

Press Enter key to get the result.

As we can see in the formula bar it is not showing the result rather it is showing the formula itself and cell A3 is showing the result of the formula.

Now we can change the numbers in A1 & A2 cell to see the immediate impact of the formula.

#### Example #2 – Use SUM Function to Add Up Numbers

To get used to the formulas in excel let’s start with the simple SUM function. All the formulas in excel should start with either + or = sign. So open the equal sign in cell A3.

Start typing SUM to see the IntelliSense list of Excel functions.

Press TAB key once the SUM formula selected to open the SUM function.

The first argument of SUM function is **Number 1 **i.e. what is the first number we need to add i.e. in this example cell A1. So select cell A1.

Next argument is **Number 2 **i.e. what is the second number or item we need to add i.e. A2 cell.

Close the bracket and hit enter key to see the result of the SUM function.

Like this, we can create simple formulas in excel to do the calculations.

#### Example #3 – Create Formula References to Other Cells Excel

We have seen the basics of creating a formula in excel. Similarly, one formula can be applied to other related cells as well. For an example look at the below data.

In Column A we have Units and in Column B we have the price per unit.

In the column, C need to arrive Sales amount. To arrive sales amount the formula is __Units * Price__

So, open equal sign in cell C2.

Select the cell A2 (Units)

Enter multiple sign (*) and select the B2 cell (Price).

Press enter key to get the sales amount.

Now we have applied the formula in cell C2, how about reaming cells.

Can enter the same formula for remaining cells individually???

If you are thinking in that way then you will be delighted to hear the fact that “Formula to be applied to a single cell, then we can copy paste to other cells”.

Now first look at the formula we have applied.

Formula says **A2 * B2.**

So when we copy and paste the formula to below cell A2 becomes A3 and B2 becomes B3.

Similarly, as we move down row numbers keep changing and column letter also will change if we move either to left or right.

Copy and paste the formula to other cells to have a result in all the cells.

Like this, we can create a simple formula in excel to start your learning.

### Recommended Articles

This has been a guide to How to Create a formula in excel. Here we’ll learn how to create a simple Excel formula along with practical examples and a downloadable excel template. You may learn more about excel from the following articles –

- How to Insert Formula in Excel?
- Excel Chi-Square Test Examples
- Calculate Running Total/Cumulative Sum in Excel
- Custom Bullet Points in Excel
- PI Excel Formula
- Excel Formula Not Updating
- List of Basic Excel Formulas
- How to Divide in Excel Formula?
- How to Calculate Percentage in Excel Formula?

- 35+ Courses
- 120+ Hours
- Full Lifetime Access
- Certificate of Completion