Difference Between Formula and Function in Excel

Excel is a powerful tool widely used for data analysis, computation and visualization. While working with Excel, we use formulas and functions frequently. Read this article to learn how an Excel formula is different from an Excel function and what are their unique features.

What is a Formula in Excel?

A formula in Excel is a user-defined expression that calculates a value. Formulas are written by the user and can include cell references, constants, arithmetic operators and functions. 

Features of Excel Formulas

Excel formulas are created manually by the user. They can combine values, references and functions. Excel formulas are tailored for specific calculation. Such formulas get updated automatically when the referenced cells are changed.

Syntax of an Excel Formula

A formula always begins with an equal sign (=) followed by the calculation logic. For example, = A1 + B1

This formula adds the values in cells A1 and B1.

What is a Function in Excel?

A function in Excel is a predefined operation that performs a specific task. Functions are built into Excel to simplify complex calculations such as summing numbers finding averages or working with text.

Features of Excel Functions

Excel functions are predefined. They can be used repeatedly across different datasets. We use Excel functions to simplify complex calculations with minimal effort. Excel functions cover a broad range including mathematical, logical, text, date and financial operations.

Syntax of a Function

A function starts with an equal sign (=) followed by the function name and arguments enclosed in parentheses. For example, =SUM(A1:A5)

This function calculates the sum of values in the range A1 to A5.

Difference Between Formula and Function in Excel

The following table compares and contrasts the various features of Formulas and Functions in Excel -

Aspect	Formula	Function
Definition	User-defined calculation.	Predefined operation provided by Excel.
Complexity	Can be as simple or complex as the user needs.	Simplifies complex operations with predefined logic.
Example	=A1 + B1	=SUM(A1:A5)
Customization	Fully customizable by the user.	Limited to predefined operations.
Ease of Use	May require more effort for complex tasks.	Simplifies repetitive or advanced tasks

Conclusion

Formulas and functions are integral components of Excel each serving distinct purposes. Formulas provide flexibility and customization for user-defined calculations, while functions simplify complex tasks with predefined operations. Understanding their differences and appropriate use cases can enhance efficiency and accuracy in data analysis.