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# Excel 2010

## Creating Simple Formulas

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### Simple Formulas

#### Video: Simple Formulas in Excel 2010

Watch the video (3:24). Need help?

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 (+), a minus sign for subtraction (-), an asterisk for multiplication (*), a forward slash for division (/), and a caret (^) for exponents.

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

#### To Create a Simple Formula in Excel:

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