Basic Excel 2007 Formula Tutorial: Step 1 of 3

The following example creates a basic formula. The steps used to create this basic
formula are the same ones to follow when writing more complex formulas. The formula
will add the numbers 3 + 2. The final formula will look like this:

= E1 + E2

Step 1: Entering the data

Note: For help with this tutorial refer to the image above.

1. Type a 3 in cell E1 and press the ENTER key on the keyboard.

2. Type a 2 in cell E2 and press the ENTER key on the keyboard.

Basic Excel 2007 Formula Tutorial: Step 2 of 3

When creating formulas in Microsoft Excel, you ALWAYS start by typing the equal
sign. You type it in the cell where you want the answer to appear.

Note: For help with this example refer to the image above.

1. Click on cell E3 (outlined in black in the image) with your mouse pointer.

2. Type the equal sign ( = ) in cell E3.

Basic Excel 2007 Formula Tutorial: Step 3 of 3

Following the equal sign, we add in the cell references of the cells containing our data.

By using the cell references of our data in the formula, the formula will automatically
update the answer if the data in cells E1 and E2 changes.

The best way of adding cell references is by using the Excel feature called pointing.
Pointing allows you to click with your mouse on the cell containing your data to add its
cell reference to the formula.

After the equal sign added in step 2

1. Click on cell E1 with the mouse pointer to enter the cell reference into the
formula.

2. Type a plus ( + ) sign.

3. Click on cell E2 with the mouse pointer to enter the cell reference into the
formula.

4. Press the ENTER key on the keyboard.

5. The answer 5 should appear in cell E3.

6. Click on cell E3. The formula = E1 + E2 is shown in the formula bar above the
worksheet.

Mathematical Operators

Creating formulas in Microsoft Excel is not difficult. Just combine the cell references of
your data with the correct mathematical operator.

The mathematical operators used in Excel formulas are similar to the ones used in math
class.

• Subtraction - minus sign ( - )

• Addition - plus sign ( + )
• Division - forward slash ( / )
• Multiplication - asterisk ( * )
 • Exponentiation - caret ( ^ )

Excel Order of Operations

If more than one operator is used in a formula, there is a specific order that Excel will
follow to perform these mathematical operations. This order of operations can be
changed by adding brackets to the equation. An easy way to remember the order of
operations is to use the acronym:

BEDMAS

The Order of Operations is:

Brackets
Exponents
Division
Multiplication
Addition
Subtraction

How the Order of Operations Works

Any operation(s) contained in brackets will be carried out first followed by any
exponents.

After that, Excel considers division or multiplication operations to be of equal

importance, and carries out these operations in the order they occur left to right in the
equation.

The same goes for the next two operations – addition and subtraction. They are
considered equal in the order of operations. Which ever one appears first in an equation,
either addition or subtraction, is the operation carried out first.
How to Create a Conditional Formula in Excel 2007

 Open an existing or new Microsoft Excel 2007 document. Click "Start" from the
main operating system menu. Then choose "Programs" from the start menu. Select
"Microsoft Office" from the programs menu. Next, choose "Microsoft Excel" from the
Microsoft Office menu. Now either choose "New" from the main menu or locate the
existing Excel document to use for a conditional formula.

 Step 2

Establish the parameters for the conditional formula. For example maybe a person can
create a conditional formula for an invoice discount. That way if the invoice is paid in
under a certain number of days then a client would receive a percentage discount.

 Step 3

Structure the conditional formula. In this example say that if the invoice is paid in less
than thirty days, the customer receives a five percent discount. The conditional formula
would look like this: IF((C5-B5)<30,D5*0.05,0). Where C5 is the date the invoice was
received, B5 is the date the invoice was issued, <30 is the date cutoff for the discount, D5
is the amount of the total invoice and 0 represents the non-discount condition of the
formula.

 Step 4

Type the conditional formula in the spreadsheet. A person can either type the formula in
or use the conditional function. To use the conditional function click on the "Formulas"
tab and choose the "Logical" option from the format library.

 Step 5

Enter the conditional formula in the "If" formula function dialogue box. Once the "If"
function dialogue box appears enter the previous formula parameter in the provided input
boxes. In the "Logical_test" box enter "C5-B5<30", then enter "D5*0.05" in the
Value_if_true box and finally enter "0" in the Value_if_false input box. The result of this
should be the same as the typed formula.

 Step 6

Test and save the Microsoft Excel 2007 spreadsheet. Be sure that the conditional formula
is working correctly by observing the results and check them against the known data.
When the formula is satisfactory, save and close the spreadsheet.