How to Calculate in Excel (Table of Contents)
Introduction to Calculations in Excel
MS Excel is the most preferred option for calculation; most investment bankers and financial analysts use it to do data crunching, prepare presentations, or model data.
There are two ways to perform the Excel calculation: Formula and the second is Function. Where formula is the normal arithmetic operation like summation, multiplication, subtraction, etc. Function is the inbuilt formula like SUM (), COUNT (), COUNTA (), COUNTIF (), SQRT () etc.
Operator Precedence: It will use default order to calculate; if there is some operation in parentheses, then it will calculate that part first, then multiplication or division after that addition or subtraction. It is the same as the BODMAS rule.
Examples of Calculations in Excel
Here are some examples of How to Use Excel to Calculate Basic calculations
Example #1 – Basic Calculations like Multiplication, Summation, Subtraction, and Square Root
Here we are going to learn how to do basic calculations like multiplication, summation, subtraction, and square root in Excel.
Let’s assume a user wants to perform calculations like multiplication, summation, subtraction by 4 and find out the square root of all numbers in Excel.
Let’s see how we can do this with the help of calculations.
Step 1: Open an Excel sheet. Go to sheet1 and insert the data as shown below.
Step 2: Now create headers for Multiplication, Summation, Subtraction, and Square Root in row one.
Step 3: Now calculate the multiplication by 4. Use the equal sign to calculate. Write in cell C2 and use asterisk symbol (*) to multiply “=A2*4“
Step 4: Now press on the Enter key; multiplication will be calculated.
Step 5: Drag the same formula to the C9 cell to apply to the remaining cells.
Step 6: Now calculate subtraction by 4. Use an equal sign to calculate. Write in cell D2 “=A2-4“
Step 7: Now click on the Enter key, the subtraction will be calculated.
Step 8: Drag the same formula till cell D9 to apply to the remaining cells.
Step 9: Now calculate the addition by 4, use an equal sign to calculate. Write in E2 Cell “=A2+4“
Step 10: Now press on the Enter key, the addition will be calculated.
Step 11: Drag the same formula to the E9 cell to apply to the remaining cells.
Step 12: Now calculate the square root>> use equal sign to calculate >> Write in F2 Cell >> “=SQRT (A2“
Step 13: Now, press on the Enter key >> square root will be calculated.
Step 14: Drag the same formula till the F9 cell to apply the remaining cell.
Summary of Example 1: As the user wants to perform calculations like multiplication, summation, subtraction by 4 and find out the square root of all numbers in MS Excel.
Example #2 – Basic Calculations like Summation, Average, and Counting
Here we are going to learn how to use Excel to calculate basic calculations like summation, average, and counting.
Let’s assume a user wants to find out total sales, average sales, and the total number of products available in his stock for sale.
Let’s see how we can do this with the help of calculations.
Step 1: Open an Excel sheet. Go to Sheet1 and insert the data as shown below.
Step 2: Now create headers for Result table, Grand Total, Number of Product and an Average Sale of his product in column D.
Step 3: Now calculate grand total sales. Use the SUM function to calculate the grand total. Write in cell E3. “=SUM (“
Step 4: Now, it will ask for the numbers, so give the data range, which is available in column B. Write in cell E3. “=SUM (B2:B11) “
Step 5: Now press on the Enter key. Grand total sales will be calculated.
Step 6: Now calculate the total number of products in the stock, use the COUNT function to calculate the grand total. Write in cell E4 “=COUNT (“
Step 7: Now, it will ask for the values, so give the data range, which is available in column B. Write in cell E4. “=COUNT (B2:B11) “
Step 8: Now press on the Enter key. The total number of products will be calculated.
Step 9: Now calculate the average sale of products in the stock, use the AVERAGE function to calculate the average sale. Write in cell E5. “=AVERAGE (“
Step 10: Now, it will ask for the numbers, so give the data range which is available in column B. Write in cell E5. “=AVERAGE (B2:B11) “
Step 11: Now click on the Enter key. The average sale of products will be calculated.
Summary of Example 2: As the user wants to find out total sales, average sales, and the total number of products available in his stock for sale.
Things to Remember About Calculations in Excel
- During calculations, if there are some operations in parentheses, then it will calculate that part first, then multiplication or division after that addition or subtraction.
- It is the same as the BODMAS rule: Parentheses, Exponents, Multiplication and Division, Addition and Subtraction.
- When a user uses an equal sign (=) in any cell, it means that the user is going to put some formula, not a value.
- A small difference from the normal mathematics symbol like multiplication uses asterisk symbol (*) and for division uses forward-slash (/).
- There is no need to write the same formula for each cell; once it is written, then just copy-paste to other cells, it will calculate automatically.
- A user can use the SQRT function to calculate the square root of any value; it has only one parameter. But a user cannot calculate square root for a negative number; it will throw an error #NUM!
- If a negative value occurs as output, use the ABS formula to determine the absolute value, which is an in-built function in MS Excel.
- A user can use the COUNTA in-built function if there is confusion in the data type because COUNT supports only numeric values.
Recommended Articles
This is a guide to Calculations in Excel. Here we discuss How to Use Excel to Calculate along with examples and a downloadable excel template. You may also look at the following articles to learn more –
