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What Is A Formula In Excel?

Excel is full of formulas. Those who master those formulas are pros of Excel. However, at the start of learning Excel, everyone is curious to know how to apply or create formulas in Excel. If you are one of them who is willing to learn how to create formulas in Excel, then this article is best suited for you. This article will have a complete guide from zero to intermediate level formula application in Excel.

Let us create a simple calculator-type formula for adding up numbers to start with Excel formulas.

Look at the below data of numbers.

create a Formula in Excel 1

In cell A1, we have 25. The A2 cell has 40, the number.

In cell A3, we need the summation of these two numbers.

In Excel, to start the formula, always put the equal sign first.

create a Formula in Excel 1-1

Now, insert 25 + 40 as the equation.

create a Formula in Excel 1-2

It is very similar to what we do in the calculator.

Press the "Enter" key to get the total of these numbers.

create a Formula in Excel 1-3

So, 25 + 40 is 65, the same we got in cell A3.

Table of contents
  • Mastering Excel formulas is crucial to being proficient in Excel. At the beginning of learning Excel, it's essential to learn how to apply and create formulas.
  • To ensure accurate calculations and efficient data management in Excel, it is best practice always to commence a formula with an equal sign (=). 
  • To open the SUM function in Excel, select the SUM formula and press the "Tab" key. This will make your work more efficient and help you perform calculations quickly and accurately.

How To Create A Formula In Excel?

Last Updated :

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Blog Author :

Jeevan A Y

Edited by :

Ashish Kumar Srivastav

Reviewed by :

Dheeraj Vaidya, CFA, FRM

Important Things To Note

  • We can create formulas in Excel using
    • Creating formula flexible with cell references
    • Using SUM function to add up numbers
    • Creating formula references to other cells Excel

Frequently Asked Questions

1. How to create a formula in Excel to calculate days?

To calculate the number of days between two dates in Excel, you can enter the dates into a cell in the format of "MM/DD/YYYY" without the quotes. After hitting enter, Excel will automatically calculate the number of days between the two dates, including leap years.

2. How to create a formula in Excel to divide?

In order to perform a division operation in Excel, use the forward slash (/) arithmetic operator. It is important to remember to include an equal sign (=) before typing in the numbers and the / operator; otherwise, Excel will interpret what you type as a date.

For example, consider the below image.

formula in Excel to divide

Press Enter Key.
We can see the result as shown in the below image.

formula in Excel to divide output

3. How to create a formula in Excel using different sheets?

To reference multiple worksheets in Excel:
1. Click the first worksheet tab.
2. Hold down 'Shift' and click the last worksheet tab.
3. Select the cell or range of cells you want to reference.
4. Complete the formula and press 'Enter.'