Introduction to Excel Formulas
What Are Excel Formulas?
Excel formulas are expressions used to perform calculations, manipulate data, and automate
tasks in a spreadsheet. They always begin with an equals sign (=).
Basic Arithmetic Formulas
1. Addition
Formula: =A1 + B1
How to Use: Place two numerical values in cells A1 and B1, then type =A1 + B1 in
another cell to get the sum.
Example: If A1 = 10 and B1 = 5, then =A1 + B1 returns 15.
2. Subtraction
Formula: =A1 - B1
Example: If A1 = 10 and B1 = 5, then =A1 - B1 returns 5.
3. Multiplication
Formula: =A1 * B1
Example: If A1 = 10 and B1 = 5, then =A1 * B1 returns 50.
4. Division
Formula: =A1 / B1
Example: If A1 = 10 and B1 = 5, then =A1 / B1 returns 2.
5. Exponentiation
Formula: =A1^B1
Example: If A1 = 2 and B1 = 3, then =A1^B1 returns 8.
6. Modulus (Remainder)
Formula: =MOD(A1, B1)
Example: If A1 = 10 and B1 = 3, then =MOD(A1, B1) returns 1.
Commonly Used Functions
1. SUM
Formula: =SUM(A1:A10)
How to Use: Adds all values in the range.
Example: If A1:A5 contains {10, 20, 30, 40, 50}, then =SUM(A1:A5) returns 150.
2. AVERAGE
Formula: =AVERAGE(A1:A10)
How to Use: Computes the mean of the selected range.
Example: If A1:A5 contains {10, 20, 30, 40, 50}, then =AVERAGE(A1:A5) returns 30.
3. MIN/MAX
Formula: =MIN(A1:A10), =MAX(A1:A10)
Example: If A1:A5 contains {10, 20, 30, 40, 50}, then =MIN(A1:A5) returns 10, and
=MAX(A1:A5) returns 50.
4. COUNT/COUNTA
Formula: =COUNT(A1:A10), =COUNTA(A1:A10)
Example: If A1:A10 contains {10, 20, "text", 40, "word", 60}, then =COUNT(A1:A10)
returns 4 (only numbers), while =COUNTA(A1:A10) returns 6 (counts all non-empty
cells).
Logical Formulas
1. IF
Formula: =IF(A1>10, "High", "Low")
Example: If A1 = 15, it returns "High".
2. IFS
Formula: =IFS(A1>10, "High", A1>5, "Medium", TRUE, "Low")
Example: If A1 = 7, it returns "Medium".
3. AND/OR/NOT
Formula: =AND(A1>5, B1<10), =OR(A1>5, B1<10), =NOT(A1>10)
Example: If A1 = 7 and B1 = 12, =AND(A1>5, B1<10) returns FALSE, while
=OR(A1>5, B1<10) returns TRUE.
Lookup & Reference Functions
VLOOKUP: =VLOOKUP(50, A2:B10, 2, FALSE)
HLOOKUP: =HLOOKUP(50, A1:J2, 2, FALSE)
INDEX/MATCH: =INDEX(B2:B10, MATCH(50, A2:A10, 0))
CHOOSE: =CHOOSE(2, "Apple", "Banana", "Cherry") returns "Banana".
Text Functions
LEFT/RIGHT/MID: Extract specific parts of a text.
LEN: Returns the number of characters in a text.
TEXT: Formats numbers as text.
SUBSTITUTE: Replaces text in a string.
Date & Time Functions
TODAY/NOW: Returns the current date/time.
YEAR/MONTH/DAY: Extracts date parts.
DATEDIF: Finds difference between dates in years, months, or days.
Advanced & Miscellaneous Formulas
ROUND/ROUNDUP/ROUNDDOWN: Rounds numbers to a specific decimal place.
RAND/RANDBETWEEN: Generates random numbers.
UNIQUE: Extracts unique values.
FILTER: Filters values based on conditions.
Practice Table: Sales Data
Use the table below to practice formulas.
Name Total Sales Commission Salary Tips
John Doe 5000 500 3000 200
Jane Smith 6000 600 3200 250
Mark Lee 4500 450 2900 180
Lucy Brown 7000 700 3400 300
Tom White 5500 550 3100 220
Emma Davis 4800 480 2800 190
Liam Green 6500 650 3300 270
Mia Black 5300 530 3000 210
Noah Blue 7200 720 3500 320
Ava Red 4900 490 2900 200
Practice Exercises
1. Calculate Commission Percentage: Use =B2*0.1 for each row.
2. Find the Highest Salary: Use =MAX(D2:D11).
3. Calculate the Average Tips Given: Use =AVERAGE(E2:E11).
4. Find the Employee with the Highest Sales: Use =INDEX(A2:A11,
MATCH(MAX(B2:B11), B2:B11, 0)).
5. Find the Employee with the Lowest Commission: Use =INDEX(A2:A11,
MATCH(MIN(C2:C11), C2:C11, 0)).
6. Check if Any Employee Earned More Than 7000 in Sales: Use
=IF(MAX(B2:B11)>7000, "Yes", "No").
These notes provide an in-depth guide to essential Excel formulas with detailed explanations,
examples, and practice exercises for effective learning.
