Basic Terms in Excel: Formulas and Functions

Basic Terms in Excel
There are two basic ways to perform calculations in Excel: Formulas and
FunctionsFormula vs FunctionA Formula is an equation designed by a user in Excel,
while a Function is a predefined calculation in the spreadsheet application. This guide
will walk you through a Formula vs Function in Excel so you know exactly what the
similarities and differences are. Excel allows users to perform simple calculations such.
1. Formulas
In Excel, a formula is an expression that operates on values in a range of cells or a cell.

For example, =A1+A2+A3, which finds the sum of the range of values from cell A1 to
Cell A3.
2. Functions
Functions are predefined formulas in Excel. They eliminate laborious manual entry of
formulas while giving them human-friendly names. For example: =SUM(A1:A3). The
function sums all the values from A1 to A3.
Five Time-saving Ways to Insert Data into Excel
When analyzing data, there are five common ways of inserting basic Excel formulas.
Each strategy comes with its own advantages. Therefore, before diving further into the
main formulas, we’ll clarify those methods, so you can create your preferred workflow
earlier on.
1. Simple insertion: Typing a formula inside the cell
Typing a formula in a cell or the formula bar is the most straightforward method of
inserting basic Excel formulas. The process usually starts by typing an equal sign,
followed by the name of an Excel function.
Excel is quite intelligent in that when you start typing the name of the function, a pop-
up function hint will show. It’s from this list you’ll select your preference. However, don’t
press the Enter key. Instead, press the Tab key so that you can continue to insert other
options. Otherwise, you may find yourself with an invalid name error, often as ‘#NAME?’.
To fix it, just re-select the cell, and go to the formula bar to complete your function.
Image: CFI’s Free Excel Crash Course.
2. Using Insert Function Option from Formulas Tab
If you want full control of your functions insertion, using the Excel Insert Function
dialogue box is all you ever need. To achieve this, go to the Formulas tab and select the
first menu labeled Insert Function. The dialogue box will contain all the functions you
need to complete your financial analysisTypes of Financial AnalysisFinancial analysis
involves using financial data to assess a company’s performance and make
recommendations about how it can improve going forward. Financial Analysts primarily
carry out their work in Excel, using a spreadsheet to analyze historical data and make
projections Types of Financial Analysis.
3. Selecting a Formula from One of the Groups in Formula Tab
This option is for those who want to delve into their favorite functions quickly. To find
this menu, navigate to the Formulas tab and select your preferred group. Click to show a
sub-menu filled with a list of functions. From there, you can select your preference.
However, if you find your preferred group is not on the tab, click on the More Functions
option – probably it’s just hidden there.
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4. Using AutoSum Option
For quick and everyday tasks, the AutoSum functionAutosumThe autosum Excel formula
is a shortcut that can save time in financial modeling in Excel. Type "ALT=" to quickly
sum all numbers in a series of data. This allows you to easily add up a series of numbers
either vertically or horizontally without having to use the mouse or even the arrow keys
is your go-to option. So, navigate to the Home tab, in the far-right corner, click the
AutoSum option. Then click the caret to show other hidden formulas. This option is also
available in the Formulas tab first option after the Insert Function option.
5. Quick Insert: Use Recently Used Tabs
If you find re-typing your most recent formula a monotonous task, then use the
Recently Used menu. It’s on the Formulas tab, a third menu option just next to
AutoSum.
Free Excel Formulas YouTube Tutorial
Watch CFI’s FREE YouTube video tutorial to quickly learn the most important Excel
formulas. By watching the video demonstration you’ll quickly learn the most important
formulas and functions.

Seven Basic Excel Formulas For Your Workflow
Since you’re now able to insert your preferred formulas and function correctly, let’s
check some fundamental Excel functions to get you started.
1. SUM
The SUM functionSUM FunctionThe SUM function is categorized under Math and
Trigonometry functions. The function will sum up cells that are supplied as multiple
arguments. It is the most popular and widely used function in Excel. SUM helps users
perform a quick summation of specified cells in MS Excel. For example, we are given the
cost of 100 is the first must-know formula in Excel. It usually aggregates values from a
selection of columns or rows from your selected range.
=SUM(number1, [number2], …)
Example:
=SUM(B2:G2) – A simple selection that sums the values of a row.
=SUM(A2:A8) – A simple selection that sums the values of a column.

=SUM(A2:A7, A9, A12:A15) – A sophisticated collection that sums values from range
A2 to A7, skips A8, adds A9, jumps A10 and A11, then finally adds from A12 to A15.
=SUM(A2:A8)/20 – Shows you can also turn your function into a formula.

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Basic Terms in Excel

In Excel, a formula is an expression that operates on values in a range of cells or a cell.

Five Time-saving Ways to Insert Data into Excel

1. Simple insertion: Typing a formula inside the cell

Image: CFI’s Free Excel Crash Course.

2. Using Insert Function Option from Formulas Tab

3. Selecting a Formula from One of the Groups in Formula Tab

4. Using AutoSum Option

<span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow:

Seven Basic Excel Formulas For Your Workflow

=SUM(B2:G2) – A simple selection that sums the values of a row.

=SUM(A2:A8) – A simple selection that sums the values of a column.

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