**Excel Formulas (Table of Contents)**

## Simple Formula in Excel

The functionality of the excel is bounded by formulas and its amazing results. If you are new to excel spreadsheet and have no idea about how formulas work in excel then this is the platform for you to understand better about the formulas.

At the end of this article, you will have a fair knowledge about the basic understanding of working with formulas. Formulas are dynamic and recalculates when the cell values changes in excel.

All the formulas in excel work exactly to the mathematics rule according to the below table.

**How to Use a Simple Formula in Excel?**

It is very simple and easy to use. Let’s understand it by some example.

### Example #1

In this example, I will show you a simple addition example. I have two numbers one is 10 and another one is 15. In simple mathematics, we will do the calculation like this.

10 + 15 = 25.

Now, look at the excel image below. In the cell A1 and A2, I have 10 and 15 respectively.

Now I want to add these two numbers. I can do this calculation in two ways. All the formulas in excel will start with an equal sign (=).

Either I can enter the numbers directly to the cell or I can give cell reference. Look at the below image I have passed the two numbers to the addition directly.

In the cell D1, I have entered the formula as **=10+15**. This is not the dynamic formula because I have not given any cell references here. If I want the formula to show 30 as the result I need to edit the formula and change the values.

Now, look at the below dynamic formula.

Now, look at the above image. In the cell A3, I have mentioned the formula as **=A1+A2**. Instead of supplying the values directly to the formula I have given reference to the cells A1 and A2.

This is the dynamic formula because to change the result of the formula I need not change the formula rather I can change the values in the cells A1 and A2.

### Example #2

We can do the summation by using the built-in function called SUM. SUM function has one mandatory argument and many optional arguments.

**Number 1:**This is the first and mandatory argument.**[Number 2]:**This is the optional argument.

Now we will see how to use mandatory and optional argument together.

See the above image, firstly I have selected the cell A1 then after the comma (,) I have selected the cell A2 this is the optional argument.

Since I have selected the cells individually I needed to mention the optional argument as well.

Now, look at the below image.

I have selected both the cells as a range, so no need of optional argument here. In this way, we can apply the basic formula.

### Example #3

This is the extension of the previous example. In the cell B1 and B2, I have entered two numbers 25 and 20.

In the cell B3 again I want to do the summation of two numbers. Here we need to understand the logic of excel. I need not apply the SUM function again here. I can copy and paste the previous formula here.

Previous formula reads **=SUM (A1:A2). **If I copy paste this formula to the right reference it will change to **=SUM (B1:B2).**

In this way, we can work with the same formula again and again.

**Things to Remember about Simple Formula in Excel**

- In order to work with excel formulas, we need to understand the logic of the excel.
- Once the formula is applied and if the same calculation is required somewhere else with the same range we copy paste the same formula.
- All the calculations in excel work exactly the same way how it works in mathematics based on the BODMAS rule.
- We can give individual cell reference as well as range references. If the cells are more then we can give range references instead of individual cells reference.

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