Lesson 48 of 104 6 min Updated Completed

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:

A formula in B4 that adds two cells and divides by 2

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

The AVERAGE function in B4 giving the same result

Enter a formula

  1. Select the cell for the formula. Here, B4.

  2. Type an equal sign (=), then your formula, and press Enter.

    Typing a formula that starts with an equal sign

Note: Always start a formula with =. Without it, Excel treats what you type as plain text or a number, not a calculation.

  1. From now on, if you change B2 or B3, Excel recalculates B4 automatically.

    B4 recalculating after a value changes

Edit a formula

  1. Select the cell with the formula. The formula appears in the formula bar.

    The formula shown in the formula bar

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

    Editing the formula in the formula bar

  3. Press Enter.

    The edited formula with its new result

Copy and paste a formula

  1. Select the cell with the formula you want to copy. Here, B4.

    Cell B4 selected before copying

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

    Copying the formula from the right-click menu

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

    Pasting the formula into D4

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

    Dragging the fill handle from B4 to 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.

The formula copied to C4 and D4

Insert a function

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

Excel suggesting functions as you type

To browse for a function instead:

  1. Select cell B4.

  2. Click the Insert Function button (fx) next to the formula bar.

    The Insert Function button next to the formula bar

  3. Search for the function you need, here AVERAGE.

    Searching for AVERAGE in the Insert Function dialog box

  4. Click OK.

    The Function Arguments dialog box for AVERAGE

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

  6. Click OK.

    The AVERAGE result in B4

Next, see the most used functions in Excel.