Excel Formulas and Functions for Beginners
A formula is a calculation you write yourself, such as =(B2+B3)/2. A function is a ready-made formula with a name, such as AVERAGE. You can use functions inside your formulas, which is where Excel gets really powerful.
Here are both approaches side by side. In the first, cell B4 has a formula that adds B2 and B3 and divides the sum by 2:

In the second, B4 uses the AVERAGE function on the same two cells. Both give the same result.

Enter a formula
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Select the cell for the formula. Here, B4.
-
Type an equal sign (
=), then your formula, and press Enter.
Note: Always start a formula with
=. Without it, Excel treats what you type as plain text or a number, not a calculation.
-
From now on, if you change B2 or B3, Excel recalculates B4 automatically.

Edit a formula
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Select the cell with the formula. The formula appears in the formula bar.

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Click in the formula bar and make your change. (Or press F2 to edit inside the cell.)

-
Press Enter.

Copy and paste a formula
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Select the cell with the formula you want to copy. Here, B4.

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Right-click and click Copy, or press Ctrl + C.

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Select D4 (or any target cell), right-click and click Paste, or press Ctrl + V.

Or, select B4 and drag the fill handle (the small square at the bottom-right corner) to the right as far as D4.

Result: the formula is copied, and it adjusts to its new column, so D4 adds D2 and D3. Dragging also filled C4; it shows 0 because C2 and C3 are empty.

Insert a function
If you know the function’s name, just type = and start typing it. Excel suggests matching functions as you go.

To browse for a function instead:
-
Select cell B4.
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Click the Insert Function button (fx) next to the formula bar.

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Search for the function you need, here AVERAGE.

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Click OK.

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Click in the Number1 box and select the cells with your mouse, or type the range, here B2:B3.
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Click OK.

Next, see the most used functions in Excel.