# Excel 2010

## Creating Simple Formulas

### Simple formulas

A **formula** is an equation that performs a calculation. Like a calculator, Excel can execute formulas that add, subtract, multiply, and divide.

One of the most useful features of Excel is its ability to calculate using a cell address to represent the value in a cell. This is called using a cell reference.

In order to maximize the capabilities of Excel, it is important to understand how to **create simple formulas and use cell references**.

### Creating simple formulas

Excel uses standard operators for equations, such as a **plus sign** for addition (+), **minus sign** for subtraction (-), **asterisk** for multiplication (*), **forward slash** for division (/), and **caret** (^) for exponents.

The key thing to remember when writing formulas for Excel is that all formulas must begin with an **equals sign** (=). This is because the cell contains, or is equal to, the formula and its value.

#### To create a simple formula in Excel:

- Select the cell where the answer will appear (B4, for example).
Selecting cell B4
- Type the
**equals sign (=)**. - Type in the formula you want Excel to calculate. For example, "75/250".
Entering formula in B4
- Press
**Enter**. The formula will be calculated, and the value will be displayed in the cell.Result in B4

If the result of a formula is too large to be displayed in a cell, it may appear as **pound signs** (#######) instead of a value. This means that the column is not wide enough to display the cell content. Simply **increase the column width** to show the cell content.