Basic Excel Formulas and Functions – A Beginner’s Guide
After mastering the Excel interface, the next step is to learn how to use formulas and functions effectively. These are the backbone of data analysis in Excel. Whether you’re calculating totals, averages, or just performing simple math, Excel provides powerful tools to handle it all.
In this blog, we’ll explore the most commonly used basic Excel formulas, how to use arithmetic operations, and understand the concept of cell referencing.
➕ 1. Arithmetic Operations in Excel
Excel supports all standard arithmetic operations:
| Operation | Symbol | Example | Result |
| Addition | + | =A1 + B1 | Adds A1 and B1 |
| Subtraction | – | =A1 – B1 | Subtracts B1 from A1 |
| Multiplication | * | =A1 * B1 | Multiplies A1 by B1 |
| Division | / | =A1 / B1 | Divides A1 by B1 |
✅ Pro Tip: Always start formulas with an equal sign (=) in Excel.
🔗 2. Cell Referencing in Excel
Understanding cell referencing is crucial for working with formulas. There are three types:
🔹 a) Relative Referencing
- Default in Excel.
- Example: =A1 + B1
- When copied to another cell, references shift accordingly.
🔹 b) Absolute Referencing
- Use $ to lock the reference.
- Example: =$A$1 + B1 → A1 won’t change when copied.
🔹 c) Mixed Referencing
- Lock either row or column.
- Examples:
- =A$1 → row locked
- =$A1 → column locked
🧠 Why is this important?
To maintain correct logic when copying formulas across rows/columns in tables or financial models.
🔧 3. Essential Excel Functions
Excel has built-in functions to perform common calculations quickly.
🔹 a) SUM() – Total of values
=SUM(A1:A5)
Adds values from A1 to A5.
🔹 b) AVERAGE() – Mean of values
=AVERAGE(B1:B5)
Returns the average of the values.
🔹 c) MIN() – Smallest value
=MIN(C1:C10)
Finds the lowest number in the range.
🔹 d) MAX() – Largest value
=MAX(D1:D10)
Finds the highest number in the range.
🔹 e) COUNT() – Number of numeric cells
=COUNT(E1:E10)
Counts how many numeric values are in the range.
🧪 Real-Life Example
Imagine you have sales data:
| Product | Sales |
| A | 1200 |
| B | 950 |
| C | 1300 |
You can apply:
- =SUM(B2:B4) → Total sales
- =AVERAGE(B2:B4) → Average sales
- =MAX(B2:B4) → Best-performing product
🧠 Final Thoughts
Learning Excel formulas and functions is essential for anyone working with data. From simple arithmetic to powerful functions like SUM() and AVERAGE(), Excel can save you hours of manual calculations.
Start practicing these functions regularly and you’ll be one step closer to Excel mastery!