Basic Excel Formulas

Step 5: Basic Excel Formulas and Functions

📌 Basic Excel Formulas and Functions for Beginners (With Examples)


🧮 What are Excel Formulas and Functions?

Formulas and functions are the most powerful tools in Excel. They allow you to perform calculations, summarize data, and automate tasks without using a calculator.

  • A formula in Excel starts with an equal sign (=).

  • A function is a predefined formula built into Excel.

📌 Example Formula: =5+5
📌 Example Function: =SUM(A1:A5)


📊 Why Use Formulas in Excel?

  • ✅ Save time on manual calculations

  • ✅ Reduce errors in data analysis

  • ✅ Automate repetitive tasks

  • ✅ Create dynamic reports and dashboards

Even if you’re a beginner, learning basic formulas will help you work smarter.


📘 Commonly Used Basic Excel Functions

Here are 5 essential functions every beginner should learn:

Function Purpose Example
SUM() Adds numbers =SUM(B2:B6)
AVERAGE() Finds the average (mean) =AVERAGE(B2:B6)
MIN() Finds the smallest value =MIN(B2:B6)
MAX() Finds the largest value =MAX(B2:B6)
COUNT() Counts number of entries =COUNT(B2:B6)

🧩 Example Table: Student Marks

Name Marks
Rina 82
Amit 90
Suman 74
Sneha 88
Ajay 69

✏️ Sample Calculations:

  • Total Marks: =SUM(B2:B6) → 403

  • Average Marks: =AVERAGE(B2:B6) → 80.6

  • Highest Marks: =MAX(B2:B6) → 90

  • Lowest Marks: =MIN(B2:B6) → 69

  • Number of Students: =COUNT(B2:B6) → 5


💡 Tips for Writing Formulas

  • Always start with =

  • Use cell references, not actual numbers

    • ✅ Good: =A1+B1

    • ❌ Bad: =82+90 (not dynamic)

  • Use AutoSum button on the Home tab to quickly add a column or row


🔍 Formula Bar vs Cell Content

When you type =SUM(B2:B6) into a cell:

  • The cell displays the result: 403

  • The Formula Bar shows the actual formula

This helps you track and edit calculations easily.


⚠️ Common Mistakes to Avoid

Mistake Explanation
Forgetting the = sign Excel won’t calculate without it
Using wrong cell ranges Always double-check the range
Mixing text and numbers in formulas Causes errors or wrong results

🧠 Practice Task for You

  1. Create a table with 5 product names and their prices

  2. Use SUM() to find total price

  3. Use AVERAGE() to find average price

  4. Highlight the highest and lowest prices using MAX() and MIN()


📥 Download Free Excel Practice File (Optional)

Want to practice formulas on real data?
📧 Subscribe to get downloadable .xlsx files with guided examples.


🧭 What’s Next?

💡 Now that you’ve mastered basic formulas, it’s time to dive deeper into cell referencing, which is crucial for writing flexible and error-free formulas.

🔗 
🔙 Previous Step: Rows, Columns, and Cells Explained
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 🧭 What’s Next?

Step 6: Cell Referencing in Excel – Relative, Absolute & Mixed →


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