Formulas in Excel: An Overview

 Choose a cell.

 To enter an equal sign, click the cell and type =.

 Enter the address of a cell in the selected cell or select a cell from
the list.

 You need to enter an operator.

 Enter the address of the next cell in the selected cell.

 Press Enter.

There is another term that is very familiar to Excel formulas, and that is
"function". The two words, "formulas" and "functions" are sometimes
interchangeable. They are closely related, but yet different. A formula
begins with an equal sign. Meanwhile, functions are used to perform
complex calculations that cannot be done manually. Functions in excel
have names that reflect their intended use.

The example below shows how we have used the multiplication formula
manually with the ‘*’ operator.

Sample Formula: "=A2*B2"

Fig: Microsoft Excel Formula

This example below shows how we have used the function - ‘PRODUCT’ to
perform multiplication. As you can see, we didn’t use the mathematical
operator here.

Sample Formula: "=PRODUCT(A2,B2)"

Fig: Microsoft Excel Function

Excel formulas and functions help you perform your tasks efficiently, and
it's time-saving. Let's proceed and learn the different types of functions
available in Excel and use

core topics and important concepts to help you get started the right way!

Excel Formulas and Functions

There are plenty of Excel formulas and functions depending on what kind
of operation you want to perform on the dataset. We will look into the
formulas and functions on mathematical operations, character-text
functions, data and time, sumif-countif, and few lookup functions.

Let’s now look at the top 25 Excel formulas you must know. In this article,
we have categorized 25 Excel formulas based on their operations. Let’s
start with the first Excel formula on our list.

1. SUM
The SUM() function, as the name suggests, gives the total of the selected
range of cell values. It performs the mathematical operation which is
addition. Here’s an example of it below:

Sum "=SUM(C2:C4)"

Fig: Sum function in Excel

As you can see above, to find the total amount of sales for every unit, we
had to simply type in the function “=SUM(C2:C4)”. This automatically
adds up 300, 385, and 480. The result is stored in C5.

2. AVERAGE

The AVERAGE() function focuses on calculating the average of the

selected range of cell values. As seen from the below example, to find the
avg of the total sales, you have to simply type in:

AVERAGE =AVERAGE(C2, C3, C4)

Fig: Average function in Excel

It automatically calculates the average, and you can store the result in
your desired location.

3. COUNT

The function COUNT() counts the total number of cells in a range that
contains a number. It does not include the cell, which is blank, and the
ones that hold data in any other format apart from numeric.

COUNT =COUNT(C1:C4)

Fig: Microsoft Excel Function - Count

As seen above, here, we are counting from C1 to C4, ideally four cells. But
since the COUNT function takes only the cells with numerical values into
consideration, the answer is 3 as the cell containing “Total Sales” is
omitted here.

If you are required to count all the cells with numerical values, text, and
any other data format, you must use the function ‘COUNTA()’. However,
COUNTA() does not count any blank cells.

To count the number of blank cells present in a range of cells,

COUNTBLANK() is used.

4. SUBTOTAL
Moving ahead, let’s now understand how the subtotal function works. The
SUBTOTAL() function returns the subtotal in a database. Depending on
what you want, you can select either average, count, sum, min, max, min,
and others. Let’s have a look at two such examples.

Fig: Subtotal function in Excel

In the example above, we have performed the subtotal calculation on cells

ranging from A2 to A4. As you can see, the function used is

SUBTOTAL =SUBTOTAL(1, A2: A4)

In the subtotal list “1” refers to average. Hence, the above function will
give the average of A2: A4 and the answer to it is 11, which is stored in
C5. Similarly,

“=SUBTOTAL(4, A2: A4)”

This selects the cell with the maximum value from A2 to A4, which is 12.
Incorporating “4” in the function provides the maximum result.

Fig: Count function in Excel

5. MODULUS

The MOD() function works on returning the remainder when a particular

number is divided by a divisor. Let’s now have a look at the examples
below for better understanding.

 In the first example, we have divided 10 by 3. The remainder is

calculated using the function

MODULUS =MOD(A2,3)

 The result is stored in B2. We can also directly type

“=MOD(10,3)” as it will give the same answer.

Fig: Modulus function in Excel

 Similarly, here, we have divided 12 by 4. The remainder is 0 is,

which is stored in B3.

Fig: Modulus function in Excel

6. POWER

The function “Power()” returns the result of a number raised to a certain

power. Let’s have a look at the examples shown below:
 Fig: Power function in Excel

As you can see above, to find the power of 10 stored in A2 raised to 3, we

have to type:

Power =POWER (A2,3)

This is how power function works in Excel.

7. CEILING

Next, we have the ceiling function. The CEILING() function rounds a

number up to its nearest multiple of significance.

Fig: Ceiling function in Excel

The nearest highest multiple of 5 for 35.316 is 40.

8. FLOOR

Contrary to the Ceiling function, the floor function rounds a number down
to the nearest multiple of significance.
 Fig: Floor function in Excel

The nearest lowest multiple of 5 for 35.316 is 35.

9. CONCATENATE

This function merges or joins several text strings into one text string.
Given below are the different ways to perform this function.

 In this example, we have operated with the syntax:

CONCATENATE =CONCATENATE(A25, " ", B25)

Fig: Concatenate function in Excel

 In this example, we have operated with the syntax:

"=CONCATENATE(A27&" "&B27)"
 Fig: Concatenate function in Excel

Those were the two ways to implement the concatenation operation in

Excel.

Also Read: How to Use Concatenate in Excel?

10. LEN

The function LEN() returns the total number of characters in a string. So, it
will count the overall characters, including spaces and special characters.
Given below is an example of the Len function.

Fig: Len function in Excel

Let’s now move onto the next Excel function on our list of this article.

11. REPLACE

As the name suggests, the REPLACE() function works on replacing the part
of a text string with a different text string.
The syntax is “=REPLACE(old_text, start_num, num_chars, new_text)”.
Here, start_num refers to the index position you want to start replacing
the characters with. Next, num_chars indicate the number of characters
you want to replace.

Let’s have a look at the ways we can use this function.

 Here, we are replacing A101 with B101 by typing

REPLACE =REPLACE(A15,1,1,"B")

Fig: Replace function in Excel

 Next, we are replacing A102 with A2102 by typing:

“=REPLACE(A16,1,1, "A2")”

Fig: Replace function in Excel

 Finally, we are replacing Adam with Saam by typing:

“=REPLACE(A17,1,2, "Sa")”
 Fig: Replace function in Excel

12. SUBSTITUTE

The SUBSTITUTE() function replaces the existing text with a new text in a
text string.

The syntax is “=SUBSTITUTE(text, old_text, new_text, [instance_num])”.

Here, [instance_num] refers to the index position of the present texts

more than once.

Given below are a few examples of this function:

 Here, we are substituting “I like” with “He likes” by typing:

“=SUBSTITUTE(A20, "I like","He likes")”

Fig: Substitute function in Excel

 Next, we are substituting the second 2010 that occurs in the

original text in cell A21 with 2016 by typing
“=SUBSTITUTE(A21,2010, 2016,2)”.
 Fig: Substitute function in Excel

 Now, we are replacing both the 2010s in the original text with
2016 by typing “=SUBSTITUTE(A22,2010,2016)”.

Fig: Substitute function in Excel

That was all about the substitute function, let’s now move on to our next
function.

13. LEFT, RIGHT, MID

The LEFT() function gives the number of characters from the start of a text
string. Meanwhile, the MID() function returns the characters from the
middle of a text string, given a starting position and length. Finally, the
right() function returns the number of characters from the end of a text
string.

Let’s understand these functions with a few examples.

 In the example below, we use the function left to obtain the

leftmost word on the sentence in cell A5.
 Fig: Left function in Excel

Shown below is an example using the mid function.

Fig: Mid function in Excel

 Here, we have an example of the right function.

Fig: Right function in Excel

14. UPPER, LOWER, PROPER

The UPPER() function converts any text string to uppercase. In contrast,

the LOWER() function converts any text string to lowercase. The PROPER()
function converts any text string to proper case, i.e., the first letter in
each word will be in uppercase, and all the other will be in lowercase.
Let’s understand this better with the following examples:

 Here, we have converted the text in A6 to a full uppercase one in

A7.

Fig: Upper function in Excel

 Now, we have converted the text in A6 to a full lowercase one, as

seen in A7.

Fig: Lower function in Excel

 Finally, we have converted the improper text in A6 to a clean and

proper format in A7.

Fig: Proper function in Excel

Now, let us hop on to exploring some date and time functions in Excel.
15. NOW()

The NOW() function in Excel gives the current system date and time.

Fig: Now function in Excel

The result of the NOW() function will change based on your system date
and time.

16. TODAY()

The TODAY() function in Excel provides the current system date.

Fig: Today function in Excel

The function DAY() is used to return the day of the month. It will be a
number between 1 to 31. 1 is the first day of the month, 31 is the last day
of the month.

Fig: Day function in Excel

The MONTH() function returns the month, a number from 1 to 12, where 1
is January and 12 is December.
 Fig: Month function in Excel

The YEAR() function, as the name suggests, returns the year from a date
value.

Fig: Year function in Excel

17. TIME()

The TIME() function converts hours, minutes, seconds given as numbers to

an Excel serial number, formatted with a time format.

Fig: Time function in Excel

18. HOUR, MINUTE, SECOND

The HOUR() function generates the hour from a time value as a number
from 0 to 23. Here, 0 means 12 AM and 23 is 11 PM.

Fig: Hour function in Excel

The function MINUTE(), returns the minute from a time value as a number
from 0 to 59.
 Fig: Minute function in Excel

The SECOND() function returns the second from a time value as a number
from 0 to 59.

Fig: Second function in Excel

19. DATEDIF

The DATEDIF() function provides the difference between two dates in

terms of years, months, or days.

Below is an example of a DATEDIF function where we calculate the current

age of a person based on two given dates, the date of birth and today’s
date.

Fig: Datedif function in Excel

Now, let’s skin through a few critical advanced functions in Excel that are
popularly used to analyze data and create reports.

20. VLOOKUP

Next up in this article is the VLOOKUP() function. This stands for the
vertical lookup that is responsible for looking for a particular value in the
leftmost column of a table. It then returns a value in the same row from a
column you specify.
Below are the arguments for the VLOOKUP function:

lookup_value - This is the value that you have to look for in the first
column of a table.

table - This indicates the table from which the value is retrieved.

col_index - The column in the table from the value is to be retrieved.

range_lookup - [optional] TRUE = approximate match (default). FALSE =

exact match.

We will use the below table to learn how the VLOOKUP function works.

If you wanted to find the department to which Stuart belongs, you could
use the VLOOKUP function as shown below:

Fig: Vlookup function in Excel

Here, A11 cell has the lookup value, A2: E7 is the table array, 3 is the
column index number with information about departments, and 0 is the
range lookup.
If you hit enter, it will return “Marketing”, indicating that Stuart is from the
marketing department.

21. HLOOKUP

Similar to VLOOKUP, we have another function called HLOOKUP() or

horizontal lookup. The function HLOOKUP looks for a value in the top row
of a table or array of benefits. It gives the value in the same column from
a row you specify.

Below are the arguments for the HLOOKUP function:

lookup_value - This indicates the value to lookup.

table - This is the table from which you have to retrieve data.

row_index - This is the row number from which to retrieve data.

range_lookup - [optional] This is a boolean to indicate an exact match or

approximate match. The default value is TRUE, meaning an approximate
match.

Given the below table, let’s see how you can find the city of Jenson using
HLOOKUP.
 Fig: Hlookup function in Excel

Here, H23 has the lookup value, i.e., Jenson, G1:M5 is the table array, 4 is
the row index number, 0 is for an approximate match.

Once you hit enter, it will return “New York”.

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22. IF Formula

The IF() function checks a given condition and returns a particular value if
it is TRUE. It will return another value if the condition is FALSE.

In the below example, we want to check if the value in cell A2 is greater

than 5. If it’s greater than 5, the function will return “Yes 4 is greater”,
else it will return “No”.
 Fig: If function in Excel

In this case, it will return ‘No’ since 4 is not greater than 5.

‘IFERROR’ is another function that is popularly used. This function returns

a value if an expression evaluates to an error, or else it will return the
value of the expression.

Suppose you want to divide 10 by 0. This is an invalid expression, as you

can’t divide a number by zero. It will result in an error.

The above function will return “Cannot divide”.

23. INDEX-MATCH

The INDEX-MATCH function is used to return a value in a column to the

left. With VLOOKUP, you're stuck returning an appraisal from a column to
the right. Another reason to use index-match instead of VLOOKUP is that
VLOOKUP needs more processing power from Excel. This is because it
needs to evaluate the entire table array which you've selected. With
INDEX-MATCH, Excel only has to consider the lookup column and the
return column.

Using the below table, let’s see how you can find the city where Jenson
resides.
 Fig: Index-Match function in Excel

Now, let’s find the department of Zampa.

24. COUNTIF

The function COUNTIF() is used to count the total number of cells within a
range that meet the given condition.

Below is a coronavirus sample dataset with information regarding the

coronavirus cases and deaths in each country and region.

Let’s find the number of times Afghanistan is present in the table.

Fig: Countif function in Excel

The COUNTIFS function counts the number of cells specified by a given set
of conditions.

If you want to count the number of days in which the cases in India have
been greater than 100. Here is how you can use the COUNTIFS function.

25. SUMIF

The SUMIF() function adds the cells specified by a given condition or

criteria.

Below is the coronavirus dataset using which we will find the total number
of cases in India till 3rd Jun 2020. (Our dataset has information from 31st
Dec 2020 to 3rd Jun 2020).
 Fig: Sumif function in Excel

The SUMIFS() function adds the cells specified by a given set of conditions
or criteria.

Let’s find the total cases in France on those days when the deaths have
been less

26. Goal Seek

Goal Seek is a function in-built in Advanced Excel Functions that allows

you to get the desired output by changing the assumptions. The process is
dependent on the trial and error method to achieve the desired result.

Let’s look at an example to understand it better.

Example
In this example, we aim to find what will be the rate of interest if the
person wants to pay

$5000 per month to settle the loan amount.

PMT function is used when you want to calculate the monthly payment
you need to pay to settle the loan amount.

Let’s go through this problem in steps to see how we can calculate the
interest rate that will settle a loan of $400,000 by $5,000 a month
payment.

 PMT formula should now be entered in the cell that is the

Payment cell adjacent. Currently, there is no value in the rate of
interest cell, Excel gives us the payment of $3,333.33 because it
assumes the rate of interest to be 0%. Ignore it.

 Go to Data > What - If Analysis > Goal Seek

  Set the monthly payment to -5,000. The deduction in amount
signifies the negative value.

Set rate of interest as the changing cell.

 Click OK. You will see the goal seek function automatically gives
the interest rate that is required to pay the loan amount.

Go to Home > Number and change the value to Percentage.

Your outcome will look like below:

27. What-If Analysis with Solver

What-If Analysis is the method of changing the values to try out different
scenarios for formulas in Advanced excel.

Several different sets of values can be used in one or multiple of these

Advanced excel formulas to explore the different results.

A solver is ideal for what-if analysis. It is an add-in program in

Microsoft Excel and is helpful on many levels. The feature can be used to
identify an optimal value for a formula in the cell known as the objective
cell. Some constraints or limits are however applicable on other formula
cell values on a worksheet.

Solver works with decision variables which are a group of cells used in
computing the formulas in the objective and constraint cells. The solver
adjusts the value of decision variable cells to work on the limits on
constraint cells. This process aids in determining the desired result for the
objective cell.

Activating Solver Add-in

 On the File tab, click Options.

 Go to Add-ins, select Solver Add-in, and click on the Go button.

 Check Solver Add-in and click OK.

  In the Data tab, in the Analyze group, you can see the Solver
option is added.

How to Use Solver in Excel

In this example, we will try to find the solution for a simple optimization
problem.

Problem: Suppose you are the business owner and you want your income
to be $8000.
Goal: Calculate the units to be sold and price per unit to achieve the
target.

For example, we have created the following model:

 On the Data tab, in the Analysis group, click the Solver button.

 In the set objective, select the income cell and set its value to
$8000.

 To Change the variable cell, select the C5, C6, and C10 cells.
  Click Solve.

Your data model will change according to the conditions.

28. If-Else

IF function is used to test the condition and return a value if the condition
is indeed true and a predetermined different value if it turns out to be
false.

If-Else =IF(test, true result, false result)

29. If-Error

The Excel IFERROR function returns an alternative result when a formula

generates an error and an expected result when no error is detected.

If-Error =IFERROR (value, value_if_error)

For example, Excel returns a divide by zero error when a formula tries to
divide a number by 0.

By using the IFERROR function, you can add a message if the formula
evaluates to an error.

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30. Index and Match

This is an Advanced Excel function. MATCH function is designed to return
the position of a value in a specified range, while the INDEX function
returns a specific value present in a uni-dimensional range.

The MATCH function returns the position of the ID you are looking for. The
INDEX function will return the value of the salary corresponding to the
position.

31. Offset Function

The OFFSET function returns a reference to a range of cells that is a

specified number of rows and columns from a cell or range of cells.

Offset Function =OFFSET(reference, rows, cols, [height], [width])

Example:

Consider the following data:

To reference C4 starting at A1, reference is A1, rows is 3 and cols is 2: