1

FORMULAS AND FUNCTION To create a formula:

Content Standard: The learners demonstrate understanding of In our example below, we'll use a simple formula and cell references
Creating a Simple Formulas, Complex Formulas, and Basic to calculate a budget.
Functions. 1. Select the cell that will contain the formula. In our
example, we'll select cell B3.
Performance Standard: The learners successfully work with formulas
and functions in Microsoft Excel 2013. They learn to apply build
formulas and apply functions to summarize data in a worksheet.

Competencies:
 Define the terms formula and cell reference.
 Explain the mathematical operators used in Excel.. 2. Type the equals sign (=). Notice how it appears
 Discuss the order of operations in mathematics. in both the cell and the formula bar.
 Define and discuss the relative and absolute References
 Discuss and demonstrate how to manually enter a formula into a
worksheet cell.
 Demonstrate how to copy a formula in a single cell and paste
that formula to a new location and how to use the fill handle to
copy a formula to multiple cells.
 Demonstrate how to Explain the basic statistical functions of 3. Type the cell address of the cell you want to
SUM, AVERAGE, COUNT, MIN, and MAX. reference first in the formula: cell B1 in our
example. A blue border will appear around the
referenced cell.
Mathematical operators
Excel uses standard operators for formulas,
such as a plus sign for addition (+), a minus
sign for subtraction (-), an asterisk for
multiplication (*), a forward slash for division
(/), and a caret (^) for exponents.
4. Type the mathematical operator you want to use.
In our example, we'll type the addition sign (+).
5. Type the cell address of the cell you want to
reference second in the formula: cell B2 in our
All formulas in Excel must begin with
example. A red border will appear around the
an equals sign (=). This is because the cell contains, or is equal to,
referenced cell.
the formula and the value it calculates.

Understanding cell references

While you can create simple formulas in Excel manually (for
example, =2+2 or =5*5), most of the time you will use cell
addresses to create a formula. This is known as making a cell
reference. Using cell references will ensure that your formulas are 6. Press Enter on your keyboard. The formula will
always accurate because you can change the value of referenced be calculated, and the value will be displayed in
cells without having to rewrite the formula. the cell.

If the result of a formula is too large to be displayed in a cell, it may

appear as pound signs (#######) instead of a value. This means the
column is not wide enough to display the cell content.
Simply increase the column width to show the cell content.

Modifying values with cell references

The true advantage of cell references is that they allow you
to update data in your worksheet without having to rewrite formulas.
In the example below, we've modified the value of cell B1 from
$1,200 to $1,800. The formula in B3 will automatically recalculate
and display the new value in cell B3.
By combining a mathematical operator with cell references, you can
create a variety of simple formulas in Excel. Formulas can also
include a combination of cell references and numbers, as in the
examples below:

Excel will not always tell you if your formula contains an error, so it's
up to you to check all of your formulas. To learn how to do this, you
can read the Double-Check Your Formulas lesson from our Excel
Formulas tutorial.
 1. Select the cell containing the formula you want to
To create a formula using the point-and-click method: edit. In our example, we'll select cell B3.
Rather than typing cell addresses manually, you can point and
click on the cells you want to include in your formula. This method
can save a lot of time and effort when creating formulas. In our
example below, we'll create a formula to calculate the cost of
ordering several boxes of plastic silverware.
1. Select the cell that will contain the formula. In our 2. Click the formula bar to edit the formula. You can
example, we'll select cell D3. also double-click the cell to view and edit the
formula directly within the cell.

3. A border will appear around any referenced

2. Type the equals sign (=). cells. In our example, we'll change the second
3. Select the cell you want to reference first in the part of the formula to reference cell B2 instead
formula: cell B3 in our example. The cell of cell C2.
address will appear in the formula, and a dashed
blue line will appear around the referenced cell.

4. When you're finished, press Enter on your

keyboard or click the checkmark in the formula
bar.
4. Type the mathematical operator you want to use.
In our example, we'll type the multiplication sign
(*).
5. Select the cell you want to reference second in
the formula: cell C3 in our example. The cell
address will appear in the formula, and a dashed
red line will appear around the referenced cell. 5. The formula will be updated, and the new
value will be displayed in the cell.

If you change your mind, you can press the Esc key on your

6. Press Enter on your keyboard. The formula will keyboard to avoid accidentally making changes to your formula.
be calculated, and the value will be displayed in To show all of the formulas in a spreadsheet, you can hold
the cell. the Ctrl key and press ` (grave accent). The grave accent key is
usually located in the top-left corner of the keyboard. You can
press Ctrl+` again to switch back to the normal view.

Hands On Challenge!
1. Open Activity workbook.
2. Create a simple addition formula using cell
references. If you are using the example, create
Formulas can also be copied to adjacent cells with the fill handle, the formula in cell B4 to calculate the total
which can save a lot of time and effort if you need to perform budget.
the same calculation multiple times in a worksheet. Review our 3. Try modifying the value of a cell referenced in a
lesson on Relative and Absolute Cell References to learn more. formula. Change the value of cell B2 to $2,000.
Notice how the formula in cell B4 recalculates
the total.
4. Try using the point-and-click method to create a
formula. Create a formula in cell G5 that
multiplies the cost of napkins by
the quantity needed to calculate the total cost.
5. Edit a formula using the formula bar. Edit the
formula in cell B9 to change the division sign (/)
to a minus sign (-).

2
To edit a formula: Complex Formulas
Sometimes you may want to modify an existing formula. In the
example below, we've entered an incorrect cell address in our A simple formula is a mathematical expression with one operator,
formula, so we'll need to correct it. such as 7+9. A complex formula has more than one mathematical
 operator, such as 5+2*8. When there is more than one operation in a
formula, the order of operations tells Excel which operation to
calculate first. In order to use Excel to calculate complex formulas,
you will need to understand the order of operations.

The order of operations


All spreadsheet programs calculate formulas based on the
Finally, we have one remaining subtraction
following order of operations:
operation: 13-1=12.
1. Operations enclosed in parentheses
2. Exponential calculations (3^2, for example)
3. Multiplication and division, whichever comes first
4. Addition and subtraction, whichever comes first
A mnemonic that can help you remember the order is PEMDAS,
or Please Excuse My Dear Aunt Sally.
Click the arrows in the slideshow below to learn more about how the 
order of operations is used to calculate complex formulas. And now we have our answer: 12. This is
the exact same result you would get if you
entered the formula into a spreadsheet.

Now let's look at a couple of examples that show how the order of
operations can affect the result.

 Creating complex formulas

While this formula may look really complicated, we In the example below, we'll demonstrate a complex formula using the
can use the order of operations step by step to find order of operations. Here, we want to calculate the cost of sales
the right answer. tax for a catering invoice. To do this, we'll write our formula
as =(D2+D3)*0.075 in cell D4. This formula will add the prices of our
items together and then multiply that value by the 7.5% tax rate
(which is written as 0.075) to calculate the cost of sales tax.


First, we'll start by calculating anything inside the
parentheses. In this case, there's only one thing we The spreadsheet then follows the order of operations and first adds
need to calculate: 6-3=3. the values inside the parentheses: (44.85+39.90) = $84.75. Then it
multiplies that value by the tax rate: $84.75*0.075. The result will
show that the sales tax is $6.36.


As you can see, the formula already looks a bit simpler. It is especially important to enter complex formulas with the correct
Next, we'll look to see if there are any exponents. order of operations. Otherwise, the spreadsheet will not calculate the
There's one: 2^2=4. results accurately. In our example, if the parentheses are not
included, the multiplication is calculated first and the result is
incorrect. Parentheses are the best way to define which calculations
will be performed first in a formula.


Next, we'll solve any multiplication and division,
working from left to right. Because the division operation To create a complex formula using the order of operations:
comes before the multiplication, it is calculated first: In our example below, we will use cell references along
3/4=0.75. with numerical values to create a complex formula that will calculate
the total cost for a catering invoice. The formula will calculate the
cost for each menu item and add those values together.
1. Select the cell that will contain the formula. In our
example, we'll select cell C4.


Now, we'll calculate our remaining multiplication
operation: 0.75*4=3. 3

 2. Enter your formula. In our example, we'll

Next, we'll calculate any addition or subtraction, again type =B2*C2+B3*C3. This formula will follow the
working from left to right. Addition comes first: 10+3=13. order of operations, first performing
multiplication: 2.29*20 = 45.80 and 3.49*35 =
 122.15. Then it will add those values together to
calculate the total: 45.80+122.15.

3. Double-check your formula for accuracy, then

press Enter on your keyboard. The formula
will calculate and display the result. In our 2. Enter the formula to calculate the desired value.
example, the result shows that the total cost for In our example, we'll type =B2*C2.
the order is $167.95.

You can add parentheses to any equation to make it easier to read.

While it won't change the result of the formula in this example, we
could enclose the multiplication operations within parentheses to
clarify that they will be calculated before the addition.
3. Press Enter on your keyboard. The formula will
be calculated, and the result will be displayed in
the cell.
4. Locate the fill handle in the bottom-right corner of
the desired cell. In our example, we'll locate the
Your spreadsheet will not always tell you if your formula contains an fill handle for cell D2.
error, so it's up to you to check all of your formulas. To learn how to
do this, check out the Double-Check Your Formulas lesson.

Hands On Challenge!
1. Use Activity work book for this activity.
2. Create a complex formula that will perform
addition before multiplication. If you are using
the example, create a formula in cell D6 that
first adds the values of cells D3, D4, and D5 and
then multiplies their total by 0.075. Hint: You'll 5. Click, hold, and drag the fill handle over the cells
need to think about the order of operations for you want to fill. In our example, we'll select
this to work correctly. cells D3:D12.

 Relative and Absolute Cell References

There are two types of cell references: relative and absolute. Relative
and absolute references behave differently when copied and filled to
other cells. Relative references change when a formula is copied to
another cell. Absolute references, on the other hand,
remain constant, no matter where they are copied.

Relative references
By default, all cell references are relative references. When copied
across multiple cells, they change based on the relative position of
rows and columns. For example, if you copy the 6. Release the mouse. The formula will
formula =A1+B1 from row 1 to row 2, the formula will be copied to the selected cells
become =A2+B2. Relative references are especially convenient with relative references, and the values will be
whenever you need to repeat the same calculation across multiple calculated in each cell.
rows or columns.

To create and copy a formula using relative references:

In the following example, we want to create a formula that will
multiply each item's price by the quantity. Instead of creating a new
formula for each row, we can create a single formula in cell D2 and
then copy it to the other rows. We'll use relative references so the
formula correctly calculates the total for each item.
1. Select the cell that will contain the formula. In our
example, we'll select cell D2. You can double-click the filled cells to check their formulas for
accuracy. The relative cell references should be different for each
cell, depending on their rows.
 5

5. Click, hold, and drag the fill handle over the cells you want
to fill: cells D4:D13 in our example.
Absolute references
There may be times when you do not want a cell reference to change
when filling cells. Unlike relative references, absolute references do
not change when copied or filled. You can use an absolute reference
to keep a row and/or column constant.
An absolute reference is designated in a formula by the addition of
a dollar sign ($) before the column and row. If it precedes the column
or row (but not both), it's known as a mixed reference.

6. Release the mouse. The formula will

be copied to the selected cells with
You will use the relative (A2) and absolute ($A$2) formats in most an absolute reference, and the values will be
formulas. Mixed references are used less frequently. calculated in each cell.
When writing a formula in Microsoft Excel, you can press the F4 key
on your keyboard to switch between relative, absolute, and mixed
cell references, as shown in the video below. This is an easy way to
quickly insert an absolute reference.

To create and copy a formula using absolute references:

In our example, we'll use the 7.5% sales tax rate in cell E1 to
calculate the sales tax for all items in column D. We'll need to use the
absolute cell reference $E$1 in our formula. Because each formula is
using the same tax rate, we want that reference to remain constant You can double-click the filled cells to check their formulas for
when the formula is copied and filled to other cells in column D. accuracy. The absolute reference should be the same for each cell,
1. Select the cell that will contain the formula. In our while the other references are relative to the cell's row.
example, we'll select cell D3.

Be sure to include the dollar sign ($) whenever you're making an

absolute reference across multiple cells. The dollar signs were
2. Enter the formula to calculate the desired value. In our omitted in the example below. This caused Excel to interpret it as a
example, we'll type =(B3*C3)*$E$1. relative reference, producing an incorrect result when copied to other
cells.

3. Press Enter on your keyboard. The formula will Using cell references with multiple worksheets
calculate, and the result will display in the cell. Excel allows you to refer to any cell on any worksheet, which can be
4. Locate the fill handle in the bottom-right corner of the especially helpful if you want to reference a specific value from one
desired cell. In our example, we'll locate the fill handle worksheet to another. To do this, you'll simply need to begin the cell
for cell D3. reference with the worksheet name followed by
an exclamation point (!). For example, if you wanted to reference
cell A1 on Sheet1, its cell reference would be Sheet1!A1.
Note that if a worksheet name contains a space, you will need to
include single quotation marks (' ') around the name. For example, if
 6
you wanted to reference cell A1 on a worksheet named July Budget,
its cell reference would be 'July Budget'!A1.

To reference cells across worksheets:

In our example below, we'll refer to a cell with a calculated value
between two worksheets. This will allow us to use the exact same
value on two different worksheets without rewriting the formula or
copying data between worksheets.
1. Locate the cell you want to reference, and note
its worksheet. In our example, we want to
reference cell E14 on the Menu Order
worksheet.

If you rename your worksheet at a later point, the cell reference will

be updated automatically to reflect the new worksheet name.
If you enter a worksheet name incorrectly, the #REF! error will
appear in the cell. In our example below, we've mistyped the name of
the worksheet. Click the Error button and select the desired
option from the drop-down menu to edit or ignore the error.

2. Navigate to the desired worksheet. In our example, we'll

select the Catering Invoice worksheet.

3. The selected worksheet will appear.

4. Locate and select the cell where you want the value to
appear. In our example, we'll select cell B2.
Hands-on Challenge!
1. Open the  activity workbook.
2. Create a formula that uses a relative reference.
Use the fill handle to fill in the formula in
cells E4 through E14. Double-click a cell to see
the copied formula and the relative cell
references.
3. Create a formula that uses
an absolute reference. Correct the formula in
cell D4 to refer only to the tax rate in cell E2 as
an absolute reference, then use the fill handle to
5. Type the equals sign (=), the sheet name followed by fill the formula from cells D4 to D14.
an exclamation point (!), and the cell address. In our 4. Try referencing a cell across worksheets. Create
example, we'll type ='Menu Order'!E14. a cell reference in cell B3 on
the Catering Invoice worksheet for cell E15 on
the Menu Order worksheet.
Functions
A function is a predefined formula that performs calculations using
specific values in a particular order. Excel includes many common
functions that can be useful for quickly finding
the sum, average, count, maximum value, and minimum value for a
range of cells. In order to use functions correctly, you'll need to
understand the different parts of a function and how to
create arguments to calculate values and cell references

The parts of a function

In order to work correctly, a function must be written a specific way,
which is called the syntax. The basic syntax for a function is
6. Press Enter on your keyboard. The value of the the equals sign (=), the function name (SUM, for example), and one
referenced cell will appear. If the value of cell E14 or more arguments. Arguments contain the information you want to
changes on the Menu Order worksheet, it will calculate. The function in the example below would add the values of
be updated automatically on the Catering Invoice the cell range A1:A20.
worksheet.

Working with arguments

 7
Arguments can refer to both individual cells and cell ranges and must
be enclosed within parentheses. You can include one argument or
multiple arguments, depending on the syntax required for the
function.
For example, the function =AVERAGE(B1:B9) would calculate
the average of the values in the cell range B1:B9. This function
contains only one argument.

3. Enter the cell range for

the argument inside parentheses. In our example, we'll
type (C3:C10). This formula will add the values of cells
C3:C10 and then divide that value by the total number of
cells in the range to determine the average.

Multiple arguments must be separated by a comma. For example,

the function =SUM(A1:A3, C1:C2, E1) will add the values of all the
cells in the three arguments.

4. Press Enter on your keyboard. The function will

be calculated, and the result will appear in the cell. In
our example, the average price per unit of items ordered
was $15.93.

Creating a function
Excel has a variety of functions available. Here are some of the most
common functions you'll use:
 SUM: This function adds all of the values of the
cells in the argument.
 AVERAGE: This function determines
the average of the values included in the
argument. It calculates the sum of the cells and
then divides that value by the number of cells in
the argument.
 COUNT: This function counts the number of cells Excel will not always tell you if your formula contains an error, so it's
with numerical data in the argument. This up to you to check all of your formulas. To learn how to do this, read
function is useful for quickly counting items in a the Double-Check Your Formulas lesson from our Excel
cell range. Formulas tutorial.
 MAX: This function determines the highest cell
value included in the argument. To create a function using the AutoSum command:
 MIN: This function determines the lowest cell The AutoSum command allows you to automatically insert the most
value included in the argument. common functions into your formula, including SUM, AVERAGE,
COUNT, MIN, and MAX. In our example below, we'll create a
To create a basic function: function to calculate the total cost for a list of recently ordered items
In our example below, we'll create a basic function to calculate using the SUM function.
the average price per unit for a list of recently ordered items using 1. Select the cell that will contain the function. In
the AVERAGE function. our example, we'll select cell D12.
1. Select the cell that will contain the function. In our
example, we'll select cell C11.

2. Type the equals sign (=) and enter the desired function 2. In the Editing group on the Home tab, locate and
name. You can also select the desired function from the select the arrow next to the AutoSum command
list of suggested functions that will appear below the cell and then choose the desired function from the
as you type. In our example, we'll type =AVERAGE. drop-down menu. In our example, we'll
select Sum.
 8

3. The selected function will appear in the cell. If

logically placed, the AutoSum command
will automatically select a cell range for the
argument. In our example, cells D3:D11 were
selected automatically and their values will To insert a function from the Function Library:
be added together to calculate the total cost. In our example below, we'll use a function to calculate the number of
You can also manually enter the desired cell business days it took to receive items after they were ordered. In our
range into the argument. example, we'll use the dates in columns B and C to calculate the
delivery time in column D.
1. Select the cell that will contain the function. In our
example, we'll select cell D3.

4. Press Enter on your keyboard. The function will 2. Click the Formulas tab on the Ribbon to access
be calculated, and the result will appear in the the Function Library.
cell. In our example, the sum of D3:D11 3. From the Function Library group, select the
is $606.05. desired function category. In our example, we'll
choose Date & Time.

4. Select the desired function from the drop-down menu. In

our example, we'll select the NETWORKDAYS function
to count the number of business days between the
ordered date and received date.
The AutoSum command can also be accessed from
the Formulas tab on the Ribbon.

You can also use the Alt+= keyboard shortcut instead of the 5. The Function Arguments dialog box will appear.
AutoSum command. To use this shortcut, hold down the Alt key and From here, you'll be able to enter or select the
then press the equals sign. cells that will make up the arguments in the
Watch the video below to see this shortcut in action. function. In our example, we'll enter B3 in
the Start_date: field and C3 in
The Function Library the End_date: field.
While there are hundreds of functions in Excel, the ones you use 6. When you're satisfied with the arguments,
most frequently will depend on the type of data your workbooks click OK.
contains. There is no need to learn every single function, but
exploring some of the different types of functions will be helpful as
you create new projects. You can search for functions by category,
such as Financial, Logical, Text, Date & Time, and more from
the Function Library on the Formulas tab.
 To access the Function Library, select
the Formulas tab on the Ribbon.
The Function Library will appear. 7. The function will be calculated, and the result will
appear in the cell. In our example, the result
shows that it took four business days to receive
the order.

Click the buttons in the interactive below to learn more about the
different types of functions in Excel.
 9

Like formulas, functions can be copied to adjacent cells. Hover the

mouse over the cell that contains the function, then click, hold, and
drag the fill handle over the cells you want to fill. The function will be
copied, and values for those cells will be calculated relative to their
rows or columns. 5. Review the results to find the desired function, then
click OK. In our example, we'll choose COUNTA because it
will count the number of cells in a cell range.

6. The Function Arguments dialog box will appear. Select

The Insert Function command the Value1: field, then enter or select the desired cells. In
If you're having trouble finding the right function, the Insert our example, we'll enter the cell range A3:A10. You may
Function command allows you to search for functions continue to add arguments in the Value2: field, but in this
using keywords. While it can be useful, this command is sometimes case we only want to count the number of cells in the cell
difficult to use. If you don't have much experience with functions, you range A3:A10.
may have more success browsing the Function Library instead. For 7. When you're satisfied, click OK.
more advanced users, however, the Insert Function command can
be a powerful way to find a function quickly.

To use the Insert Function command:

In our example below, we want to find a function that will count the
total number of items ordered. We want to count the cells in
the Item column, which uses text. We cannot use the basic COUNT
function because it will only count cells with numerical information.
Instead, we will need to find a function that counts the total number of
cells within a cell range.
1. Select the cell that will contain the function. In 8. The function will be calculated, and the result will appear in
our example, we'll select cell B16. the cell. In our example, the result shows that a total
of eight items were ordered.

2. Click the Formulas tab on the Ribbon, then

select the Insert Function command.

Challenge!
1. Open an existing Excel workbook. If you want,
you can use our activity workbook.
2. Create a function that contains one argument.
Use the SUM function in cell B16 to calculate
the total quantity of items ordered.
3. Use the AutoSum command to insert a function.
3. The Insert Function dialog box will appear. Insert the MAX function in cell B23 and use the
4. Type a few keywords describing the calculation you want cell range D3:D15 for the argument to find the
the function to perform, then click Go. In our example, we'll most expensive item that was ordered.
type Count cells, but you can also search by selecting 4. Explore the Function Library, and try using
a category from the drop-down list. the Insert Function command to search for
different types of functions.
 4. ________________________
Activity 1. Answer the following.
5. ________________________
True/False
1. The arithmetic operator, *, instructs Excel to perform a B. Using the data given, calculate the average sales of all salesmen
division operation. by writing the correct function formula. Write your answer in the blank
2. In Excel 2013, fixed references are referred to as relative provided below the figure. (Rubrics: 6 pts. – if the formula used is
references. complete and correct; 4 pts. – if the formula use is partially complete
3. The = (equal) symbol is used to signify the beginning of a and correct; 2 – wrong answer; 0 -no answer. [6 points]
formula. A B C D E F
4. When a small black square appears in the lower-right corner
of the cell,
1 Brick Court Investments
information may be filled using the fill handle. 2 Overtime calculations for the month of November
5. The If function is considered a financial function. 3 Date Name Hours Day of Rate Amo
Worked Week unt
Multiple Choice 4 27-Oct Albert 4 Sun 100 400
1. If the year 35 is entered into a worksheet, Excel 5 8-Nov Albert 3 Fri 50 150
automatically changes it to the four-digit year of _____. 6 18-Nov Lewis 4 Mon 50 200
a. 1735
7 9-Nov Albert 4 Sat 50 200
b. 1935
c. 2035 8 21-Nov Albert 4 Thu 50 200
d. 2135 9 28-Oct Carl 3 Mon 50 150
2. All of the following are Excel arithmetic operators except 10
_____. Aver
a. ^ age
b. *
c. % Answer:
d. > __________________________________________________
3. Each time a value is entered into the worksheet, Excel
automatically ____
formulas.
a. Includes the number in
b. Recalculates old
c. Recalculates new
d. Recalculates all
4. Which button on the Home Ribbon will allow additional
decimal spaces to be displayed?
a. alignment
b. increase decimal
c. comma (,) style
d. currency style
5. Which symbol is displayed throughout a cell when there is
not enough width to accommodate the entry?
a. #
b. *
c. +
d. &

WRITING FORMULAS:
A. Using the data given to get the sum of all the figures within the
range, by writing the correct function formula. Write in the
blank provided in the right side of the figure. (5 pts. – 2 pts.
each) [10 points]
A B C D E F G
1 Mon Tue Wed Thur Fri TOTA
L
2 Breakfa 3,560 3,186 2,952 3,395 3,436 (1)
st
3 Lunch 20,16 21,41 19,91 19,68 18,62 (2)
3 6 2 1 8
4 Bar 9,873 12,17 12,64 12,71 18,84 (3)
2 2 1 6
5 Snacks 2,405 3,544 2,694 3,120 3,712 (4)
6 TOTAL (5)
S

. 1.________________________
2. ________________________
3. ________________________