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Former Lifewire writer Ted French is a Microsoft Certified Professional who teaches and writes about spreadsheets and spreadsheet programs. Updated November 10, people found this article helpful An Excel spreadsheet is helpful for displaying information in an organized way but Excel can be used for so much more.

Its powerful calculation ability enables you to enter, manipulate, and analyze numbers. To take advantage of this function, you need to learn about formulas, which are essentially math equations. Here we describe how to create basic and slightly more complex formulas in Excel. Excel Formula Basics Writing a spreadsheet formula is different from writing an equation in math class.

The equal sign indicates that what follows is part of a formula and not just a word or number that you want to appear in the cell.

After you type the formula and press Enter on your keyboard, the result of the formula appears in the cell. The formula is still there, but it doesn't appear in your spreadsheet. If you select the cell, though, the formula appears in the formula bar at the top of the Excel screen. Improve Formulas with Cell References Excel formulas can also be developed using cell references.

Continuing with our example, you would not enter the numbers 3 and 2, but instead would name cells where these numbers have been entered see Using Cell References below for more on cell naming.

When you write a formula this way, the formula cell always shows the sum of the numbers in those cells, even if the numbers change. Here's a real-life example of how this approach can be useful. Say you lead a team of salespeople and are tracking their monthly and quarterly sales. You want to calculate their total sales for the year. Instead of entering every quarterly sales value into a formula, you use cell references to identify the cells where those values can be found within the spreadsheet.

Using Cell References Each cell in Excel is part of a row and a column. Rows are designated with numbers 1, 2, 3, etc. To refer to a cell, use the column letter and row number together, such as A1 or W22 the column letter always comes first. If you have a cell selected, you can see its reference at the top of the screen in the Name Box next to the formula bar.

In the image above, notice the cell references in the formula bar: E2, I2, M2, and Q2. They refer to the quarterly sales numbers for the salesperson named Jean. The formula adds those numbers together to come up with the annual sales number. If you update the numbers in one or more of those cells, Excel will recalculate and the result will still be the sum of the numbers in the referred cells. First, you must populate the spreadsheet with data.

Open a new Excel file and select cell C1 to make it the active cell. Cell C2 should be selected. If it's not, select cell C2. Now create the formula. Notice that when you type each cell reference, that cell becomes highlighted. Press Enter to complete the formula. The answer 5 appears in cell D1. This method is the fastest of those we've discussed; it's also the most accurate because you eliminate the risk of making a mistake in typing in numbers or cell references.

Here's how to do it starting with the spreadsheet from the examples above: The result appears in cell E1. To see how altering one of the formula values alters the result, change the data in cell C1 from 3 to 6 and press Enter on your keyboard. Notice that the results in cells D1 and E1 both change from 5 to 8, though the formulas remain unchanged. Mathematical Operators and Order of Operations Now we turn to operations besides addition, including subtraction, division, multiplication, and exponentiation.

The mathematical operators used in Excel formulas are similar to those you may remember from math class: Subtraction — minus sign -.

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