Formulas and Functions are the true power of Excel. From simple arithmetic to advanced lookups, they help you perform calculations, analyze data and automate repetitive tasks. If you are new to Excel, learning the basic formulas and functions will give you a solid foundation to handle everyday tasks. Whether you’re adding numbers, searching values, or creating logical tests, mastering formulas & functions will make your Excel work faster and smarter.
This guide gives you a complete overview of Basic formulas & functions in Excel. Bookmark this page—this will be your go-to hub for everything related to Excel calculations.
In this guide, we’ll cover:
- What are formulas and functions?
- Difference between formula and function
- How to write formulas and functions in Excel
- Commonly used Excel formulas and functions
- Tips and best practices
What is a Formula in Excel?
A formula is an expression written by you using numbers, cell references, and operators.
- Example: =A1+B1 → adds the values in A1 and B1.
What is a Function in Excel?
A function is a predefined formula built into Excel. It saves time by performing common calculations automatically.
- Example: =SUM(A1:A10) → adds all values from A1 to A10.
Difference Between Formulas & Functions:
| Feature | Formula | Function |
| Definition | Written manually using operators | Predefined calculation provided by Excel |
| Example | =A1+B1-C1 | =SUM(A1:A10) |
| Flexibility | Fully customizable | Limited to available functions |
How to Write a Formula in Excel?
- Start with `=` (equals sign).
- Use cell references and operators. Example: `=A1*B1`
- Press Enter.
How to Use a Function in Excel
- Start with `=`.
- Type the function name.
- Add arguments inside brackets. Example: =AVERAGE(A1:A10)
In this guide, we’ll explore the most commonly used basic formulas and functions in Excel with simple examples.
Basic Formulas & Functions in Excel:
Here we have 5 cells, now we will perform below tasks with this example.
| A1 | B1 | C1 | D1 | E1 |
| 15 | 5 | 4 | 2 | 1 |
| Task | Formula Method | Function Method |
| Addition (Sum of all cells) – Add A1 to E1 | =A1+B1+C1+D1+E1 Answer → 27 | =SUM(A1:E1) Answer → 27 |
| Subtraction (Subtraction of all 5 cells) | =A1-B1-C1-D1-E1 Answer → 3 | =A1-SUM(B1:E1) Answer → 3 |
| Multiplication (Product of all cells) Multiply A1 to E1 | =A1*B1*C1*D1*E1 Answer → 600 | =PRODUCT(A1:E1) Answer → 600 |
| Division (A1 ÷ B1) – Divide first cell by second | =A1/B1 Answer → 3 | =QUOTIENT(A1,B1) Answer → 3 |
| Average (Mean of 5 cells) Find average of all cell values | =(A1+B1+C1+D1+E1)/5 Answer → 5.4 | =AVERAGE(A1:E1) Answer → 5.4 |
| Percentage (B1 ÷ A1 in %) | =B1/A1 Now go to Home tab on the ribbon and click on percent style option in the number group. Now the percentage style will be displayed. Answer → 33% | No direct Function. |
| Maximum (Largest value) Highest number in the cell range | No formula | =MAX(A1:E1) Answer → 15 |
| Minimum (Smallest value) Lowest number in the cell range | No formula | =MIN(A1:E1) Answer → 1 |
| Count (Number of cells with values) | =1+1+1+1+1 (manual count) | =COUNT(A1:E1) Answer → 5 |
Count Non-Empty Cells | Need to calculate manually | =COUNTA(A1:E1) Answer → 5 |
Current Date | Need to enter manually | =TODAY() Answer → 10-09-2025 |
| Current Date & Time | Need to enter manually | =NOW() Answer → 10-09-2025 10:59 |
| Round (Round A1/B1 result) | No formula | =ROUND(A1/B1,0) Answer → 3 |
| Round Up (Always higher) | No formula | =ROUNDUP(A1/B1,0) Answer → 3 |
| Round Down (Always lower) | No formula | =ROUNDDOWN(A1/B1,0) Answer → 3 |
| Square Root (√A1) – Square root of first cell | =A1^0.5 or =A1^(1/2) Answer → 3.87 | =SQRT(A1) Answer → 3.87 |
| Power (A1 raised to 3) | =A1^3 Answer → 3375 | =POWER(A1,3) Answer → 3375 |
| Square (A1 × A1) | =A1*A1 Answer → 225 | =POWER(A1,2) Answer → 225 |
| Even (Next even of A1) | No formula | =EVEN(A1) Answer → 16 |
| Odd (Next odd of A1) | No formula | =ODD(A1) Answer → 5 |
These basic Excel formulas and functions are the foundation of everything you will do in Excel. They help you perform calculations, manage text and handle dates quickly and easily.
By practicing these basic Excel formulas and functions, you can quickly improve your productivity in Excel. Once you are comfortable with these basics, you can move on to more advanced Excel functions for deeper analysis.