1. Excel:
Formulas and Functions
Excel provides several methods to calculate values within a
worksheet using formulas and functions. You can enter
formulas directly into cells on a worksheet, use automated
function shortcuts, create formulas using the formula bar, or
selected formulas contained in the Function Library.
FORMULAS AND FUNCTIONS
Formulas areequations that perform calculationson values in
your worksheet. Excel offers three methods to enter formulas
into cells on the worksheet.
 Cell Formula Entry
 Formula Bar Function Entry
 Functional Argument Entry
Excel follows an order of precedence rule when calculating
values, meaning that the way you enter a formula determines
the values calculated first. Calculations follow this order of
precedence:
 parentheses
 exponentiation
 multiplication and division
 addition and subtraction
For example, the result of 2+3*4 is 14, but the result of
(2+3)*4 is 20.
Cell Formula Entry
Excel uses the following mathematical operators in formulas
to perform calculations:
Operator Function
+ (plus sign) Addition
- (minus sign) Subtraction
* (asterisk) Multiplication
/ (slash) Division
( ) (parenthesis) Controls the order of mathematical
operations;performs calculations within
parentheses first
% (percent) Converts a number into a percentage;
for example Excel interprets the entry
10% as the value .10
^ (caret) Exponentiation; for example when you
enter 2^3, Excel reads the value as
2*2*2entering
You can enter a formula directly into a cell or in the formula
bar on the worksheet. Click the desired cell and begin typing
the formula or type the formula in the FORMULA BAR.
Formulas also appear in the FORMULA BAR when entered
directly into the cell. For example, the formula =5+2*3 shown
in the example above multiplies 2 by 3 and then adds 5. The
type of calculation appears in the NAME FIELD. After entering
the formula in the cell, press ENTER to perform the
calculation.
The name field always displays “SUM” to indicate the type of
calculation when a formula starts with an equal sign (=). If a
formula contains a functional argument (i.e., Average) after the
equal sign, the Name field displays “AVERAGE” instead.
A formula can also contain any or all of the following:
functions (i.e., SUM, AVERAGE, MIN, MAX, IF), references to a
cell and column (i.e., A2, B3, etc.), operators (+add, -subtract,
*multiply, /divide), and constants (values that do not
calculate). For example, the same formula used above can be
entered as =A1+B1*C1 when values appear in separate cells.
When using a Function to indicate the type of formula,
enclose the values in parentheses. For example, when using
the “SUM” function in the formula enter =Sum(A1+B1*C1).
All three (3) entry examples yield the same result—11.
AUTOSUM AND AUTOCALCULATE FUNCTIONS
Excel provides shortcuts to perform common calculations
using the AUTOSUM BUTTON . When clicked, the
AutoSum button automatically calculates values in rows or
columns adjacent to the active cell.
The AutoSum button also contains additional shortcuts that
allow you to determine the Average, Count Numbers,

2. Excel: Formulas and Functions
Page 2
Minimum and Maximum values quickly. Click the drop-list
arrow on the AutoSum button to select these options.
Clicking More Functions opens the INSERT FUNCTION
DIALOG BOX.
In addition to the AutoSum shortcuts, Excel offers an
AutoCalculatefeature that immediately displaystheresults of
the commonly used calculations on the Status Bar.
When you selecta range of cells containing values Excel used
the AUTOCALCULATE feature to quickly calculate and
temporarily display the results on the status bar. By default
the status bar displays the Average, Count, Count Numbers,
Min, Max, and Sum. You can change which results display by
changing the status bar options.
To change the AutoCalculate display:
1. Right-click the status bar.
2. Click an option to select/deselect itfor display on the
status bar.
AUTOCOMPLETE FORMULA ENTRY
Formula AutoComplete provides a list of function options as
you begin to type a formula. For example, when you type a
letter after the equal sign,Excel displaysa listing of functions
that correspond with the letters.
To Use the AutoComplete Feature
1. Click a cell and type the EQUAL SIGN =
2. Begin typing the letters to spell outthe function name,
(i.e., M-I-N for minimum). A listof functions that
correspond with the typed letters displaysthe
highlighted matchingfunction alongwith its description.
3. Click a function to select it.
FORMULA BAR ENTRY
Use the FUNCTION BUTTON to enter formulas directly
into the FORMULA BAR. Clicking the Function Button
launches the INSERT FUNCTION DIALOG BOX where you can
search for or select a function from the SELECT A FUNCTION
LIST. If you are unsure of the function to use, type a
description of the function you want to perform in the
SEARCH FOR A FUNCTION BOX.
After selecting a function, the FUNCTION ARGUMENTS
WIZARD allows you to enter the cell references or values
used in the calculation. As you enter values, the wizard
displays each of its arguments, the function and argument
descriptions, the current value results, and finally, the
formula result.
To use Formula Bar Entry:
1. Click the FUNCTION BUTTON on the FORMULA BAR to
launch the INSERT FUNCTION DIALOG BOX.
2. Type a description of the function in the SEARCH BOX, or
select a function from the FUNCTION LIST.
3. ClickOK. The FUNCTION ARGUMENTS DIALOG BOX
appears.
4. The NUMBER1 fieldpopulatesautomaticallywith
the cell referencesadjacenttothe cell containing
the formula.Clickinthe Numberfieldtoenterthe
correct cell reference(s),orclickthe open/close
buttonto selectthe desiredcell/cellrange.

3. Excel: Formulas and Functions
Page 3
Use a colon to indicate cell ranges or use commas to separate
individual cell references.
5. After selectingthe desired cells to includein the formula,
click OK to insertthe formula resultin the cell.
FUNCTION ARGUMENT ENTRY
The FUNCTION LIBRARY consists of specific functions
categorized according to the type of calculation desired.
Select the FORMULAS TAB to access the FUNCTION
LIBRARY.
Click the DROP-DOWN LIST ARROW on the function button to
access and select the desired function from the list. With the
exception of the AUTOSUM FUNCTION BUTTON, each
function button opens its corresponding FUNCTION
ARGUMENTS DIALOG BOX.
MODIFYING FORMULAS
Modifyingcell rangeborders quickly updates an existing
formula.Simply select the cell containingthe formula to
display theborder around the cell included in the range, and
then click and drag the cell handles to select/deselect cells or
move the cell range to edit the formula.
For example, if cell C9 contains the formula for the resultof
the range C5:C8, click cell C9 to view the formula and display
the border surroundingthe cell range values.When you click
cell the cell handlein cell C5 changes to a diagonal arrow.
Drag the border down to selectcells C6:C7 instead.
You can also click thecell handle,and when four-point arrow
displays,move the border to select a different cell rangeor
resizethe border to includeadditional cells in therange.
FORMULA AUTOCORRECT FEATURE
Excel provides an AutoCorrect feature to help correct
formulas. AutoCorrect identifies and offers suggestions on
common mistakes made when entering formulas. For
example, if a formula is entered as =A1+B1+, AutoCorrect will
suggest the formula =A1+B1. If an error occurs,you can either
accept the correction provided or correct the formula
yourself.
Remember the Order of Precedence Rule when entering
formulas.
FORMULA ERROR CHECK FEATURE
Excel provides an error-checking feature that automatically
checks formulas against a pre-existing set of rules. If a
formula breaks a rule, an ERROR CHECKING SMART TAG
INDICATOR in the form of a colored triangle appears in the
upper-left corner of the cell containing the suspect formula.
Pointing to the smart tag displays the reason for flagging the
formula.
Rules that trigger an error indicator include:
 checkingfor numbers stored as text
 formula range inconsistencies between the cell range
used in the formula and the cell range(s) adjacentto the
formula cell(
 the omission of a cell(s) in a continuous range
Clicking the error checking smart tag displays a list of
commands to automatically correct the error, ask for help in
correcting the error, ignore the error, or edit the error in the
formula bar.