Remember using formulas to calculate math problems in school, like 2 plus 2 equals 4,
or 2 pizzas times $10 equals $20?
Excel can use these same formulas to work with numerical data in your spreadsheets,
just like a calculator.
Excel uses standard operators for its math equations, like a plus sign for addition,
a minus sign for subtraction, an asterisk for multiplication, a forward slash for division,
and a caret for exponents.
You're probably used to seeing equations like 5+5=, but in Excel, the equal sign comes first.
This is because the cell itself contains, or is equal to, the formula and its value.
Let's create a simple formula to add up the budgets for June and July.
I've already typed in those values, and the total is going to be $1200 plus $1500.
But instead of typing those numbers, we're going to use cell references.
Start by clicking on the cell where you want the total to appear, and then type an equal
sign, which is how you'll always start a formula.
Then, type the address of the first cell you want to add, which is B2, plus the second
cell, B3.
When you're done, press Enter on your keyboard, and Excel displays the value in the cell.
Now you may be wondering why we used cell references instead of numbers.
The main reason is that if you ever change the values in these cells, you won't have
to re-type the formula; Excel will automatically recalculate the answer so it stays up-to-date.
You should generally use cell references in your formulas whenever you can.
To edit your formula, you can double-click the cell.
If you make a mistake or change your mind, you can press Escape on your keyboard, and
it will go back to the way it was.
Let's try another example, this time with multiplication.
I want to calculate the total price for the plastic silverware, so I'll need to multiply
cell E4 by F4.
The formula is going in cell G4, so I'll click there and type an equal sign.
This time, instead of typing the cell references, I'm going to use something called the point
and click method.
You may find that this is easier than typing them.
Press the Enter key, and it calculates the answer.
Finally, I want to show you a quick way to add a formula to several cells at once.
Instead of typing formulas for each of these three cells, you can select the first one,
and then locate the fill handle in the lower-right corner of the cell.
Click and drag the fill handle down, and when you release the mouse it will automatically
enter the formula into these cells.
Now, we can see the total cost of each item.
This is a great shortcut to use when you want to have similar formulas on each row.
Once you're comfortable creating formulas, you'll use them all the time because they
really are one of the most powerful and convenient features of Excel.