How to Create a Formula in Excel?

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.

To start off with excel formulas, let’s create a simple calculator-type formula of adding up numbers.

You can download this Create a Formula Excel Template here – Create a Formula Excel Template

Look at the below data of numbers.

create a Formula in Excel 1

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 numbers.

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

create a Formula in Excel 1-1

Now enter 25 + 40 as the equation.

create a Formula in Excel 1-2

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

Press the enter key to get the total of these numbers.

create a Formula in Excel 1-3

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

#1 Create Formula Flexible with Cell References

Lest start.

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


    create a Formula in Excel 2

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

  2. To overcome this issue, we can give cell reference as the formula reference.Open equal sign in cell A3.


    create a Formula in Excel 2-1

  3. Select cell A1.


    create a Formula in Excel 2-2

  4. Put Plus (+) sign and select cell A2.


    create a Formula in Excel 2-3

  5. Press the Enter key to get the result.


    create a Formula in Excel 2-4

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 cells to see the immediate impact of the formula.

#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 should start with either + or = sign. So open the equal sign in cell A3.

Use SUM Function 1

Start typing SUM to see the IntelliSense list of Excel functionsList Of Excel FunctionsExcel functions help the users to save time and maintain extensive worksheets. There are 100+ excel functions categorized as financial, logical, text, date and time, Lookup & Reference, Math, Statistical and Information functions.read more.

Use SUM Function 1-1

Press the TAB key once the SUM Formula is selected to open the SUM function in excel.

Use SUM Function 1-2

The first argument of the 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.

Use SUM Function 1-3

The next argument is Number 2, i.e., what is the second number or item we need to add, i.e., A2 cell.

Use SUM Function 1-4

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

Use SUM Function 1-5

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

#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 example, look at the below data.

Formula References to Other Cells 1

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

In the column, C needs to arrive Sales amount. To arrive at the sales amount, the formula is Units * Price.

  • So, open equal sign in cell C2.
Formula References to Other Cells 1-1
  • Select the cell A2 (Units)
Formula References to Other Cells 1-2
  • Enter multiple sign (*) and select the B2 cell (Price).
Formula References to Other Cells 1-3
  • Press the enter key to get the sales amount.
Formula References to Other Cells 1-4

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

Can you enter the same formula for the 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 References to Other Cells 1-5

The formula says A2 * B2.

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

Formula References to Other Cells 1-6

Similarly, as we move down, row numbers keep changing, and column letters 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.
Formula References to Other Cells 1-7

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

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

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