Formula is a data entry capable of performing mathematical and logical operations automatically, starts with an equal sign

(=), followed by one or more operand, separated by one or more operators. Operands can be a: value (1, 23, 4.5, 0.67), cell
references, defined names, function names. Operators are: Symbols which represents various, Arithmetic and comparison
operations, you perform on the operands. Before entering a formula: 1. Determine where to put the formula, the location of
the formula is where the result of the computation will be shown. 2. Formulas in Excel always begin with an equal sign
Reference identifies a cell or a range of cells from the worksheet and tell Excel where to look for the values or data that you
want to use in a formula 3 Kinds of References
1. Relative reference- stores the exact location of the cells to which the formula refers while taking careful note of where
those cells are located. It allows Excel to automatically modify the cell references as you copy or move a formula
2. Absolute reference- does not adjust the cell reference when you move or copy the formula. It uses a Dollar sign
3. Mixed reference- combination of absolute and relative reference such as relative column and absolute row.
In Excel, operators are executed from left to right in this order:
1st – parenthesis[ () ]; 2nd – percent- [%]; 3rd – exponentiation-[ ^]; 4th - multiplication and division – [* and /]; 5th - addition
and subtraction –[ + and –]; 6th - concatenation – [&]; 7th - comparison of logical operators - [=, <, >, <>,<=,>=]
Common Errors in Formulas
Error value Meaning Causes
#### - cell contents can’t be displayed correctly cell column is too narrow
#DIV/0- Division by zero a cell that contains the value 0 or is blank
#NAME? -Excel doesn’t recognize a text in the formula a formula can’t be computed if a text is included
#NULL! You specified an intersection of two cell ranges happens when you insert a space instead of a whose
cells don’t actually intersect comma between cell ranges in function arguments
#NUM! problem with the number in the formula occurs when invalid arguments exist in an Excel
function
#REF! Invalid cell references your formula referred to cell that doesn’t exist
#VALUE! wrong type of argument or operator in a function specifying math operations to cell/s that contain
text
#N/A no value available a special value which indicates that the value is not
yet available
Functions
Functions – predefined formulas that performs calculations by using specific values called arguments in a particular order.
Built-in formulas in Excel. It has a name and arguments.
It has 3 Parts: Equal sign – a function begins with an equal sign
Function name – Ex: Sum, Ave, Min, Max.
Arguments- enclosed by parenthesis, can be: Numbers, Cell References, Logical Values(True/False).
5 Ways to Enter Formulas:
1.Formula AutoComplete feature in Excel, 2. Function buttons on Formula Library of the Formula tab, 3. Insert function
button in the Formula tab, 4. Insert function button in the Formula bar, 5. Press Shift and F3
Insert Function- a box showing a list of available functions.
The Mathematical Functions
Sum Function- adds a value in a range of cells, if you want to add values in a range: Ex: = SUM(A1:A8)
Using the AutoSum – allows to quickly add a range of cells together. To use AutoSum:
Average Function- used to find the average of values in a given range of cells, Ex: = AVERAGE(A1:A8)
Count Function- counts the number of cells that contains numeric values such as numbers and dates
CountA – counts the number of cells which contains data or cells which are not empty in a given range of cells
The Statistical Functions
MIN(Minimum) – indicates the lowest value in the range;
MAX(Maximum)- indicates the highest value in a range
MEDIAN- indicates the number in the middle of a set of numbers;
2 Types of Mode
MODE.SINGLE- returns the most frequently occurring or repetitive value in an array, range of cells
MODE.MULT - returns a vertical array of the most frequently occurring or repetitive value in an array, range of cells
 The Date Functions
NOW – to include the current date and time in the system clock of your computer;
TODAY - to include the current date in the system clock of your computer;
DAY- returns the day of the month (1-30);
DAYS- returns the number of days between two dates;
WEEKDAY- returns the day of the week (1-7);
WEEKNUM- returns the week number in the year;
NETWORKDAYS- returns the number of whole workdays between two dates;
MONTH- returns the month number (1-12);
YEAR- returns the year of the date (1900-9999)
The Basic Time Functions
Second- returns the seconds value (0-59);
Minute – returns the minute (0-59);
Hour- returns the hour in number form: 0 as 12:00 AM to 23 as 11:00 PM;
Text and Data Functions
Proper Function- used to change the case of the selected text to all proper case letters.
Ex: john clarence r. Richardson Result: John Clarence R. Richardson;
Upper Function- change selected text into capital letters or uppercase letters.
Ex: john clarence r. Richardson Result: JOHN CLARENCE R. RICHARDSON;
Lower Function- used to change the case of the selected text to all lower case letters.
Ex: John Clarence R. Richardson Result: john clarence r. richardson;
Substitute Function- replace a set of character with another character or text. Syntax: SUBSTITUTE (text, old_text, new_text)
Ex: SUBSTITUTE (A1, RICHARDSON, WILLIAMS) Result: JOHN CLARENCE R. WILLIAMS
Logical Functions
IF Function- returns one value if a condition you specify evaluates to TRUE and another value if the condition evaluates to
FALSE. Has 3 Arguments:
1.Logical_test- value/expression that can be evaluated to True or False.
2.Value_if_true- value returned if logical test is True.
3.Value_if_false- value returned if logical test is False
Nested Ifs- If functions inside another If function. The first argument you will test a condition. The second and third
argument, value if true or false could have another IF statement;
Financial Functions
Common Arguments with Financial Functions
RATE- returns the interest rate period of an annuity. Payment is calculated monthly which means that rate would
normally be divided by 12. To compute for RATE =rate / 12 (there are twelve (12) months in one year)
NPER- total number of payment periods in a year. Payment terms are in years which is multiplied by 12 because we
have 12 months in a year. To compute for NPER =number of years * 12 (there are twelve (12) months in one
year)
PMT- payment made each period, contains principal(PV) and interest(RATE)
PV- the present value that a series of payment is worth. If it is omitted, it is assumed to be zero.
PMT Function (Payment) - allows to compute the periodic payment amount for a loan on car, house or any other item.
Requires: 1. Interest Rate (RATE) 2. Length of Loan, Number of periods (NPER) 3. Amount Borrowed (PV)
Syntax: = PMT (RATE, NPER, PV)
FV Function (Future Value)
returns the future value of the investment at the end of the term using calculated investment rate. Future value is
used to compute the future value of an investment based on recurring periodic payments at a constant rate of
interest.
Requires: 1. Interest rate (RATE) 2. Number of payment periods (NPER) 3. Payment per period (PMT)
Syntax: = FV (RATE, NPER, PMT)