When using formulas in Excel you can add, subtract, multiply, and divide. Use simple Excel formulas to also make cell references in Excel.
When a formula contains a cell address, it is called a cell reference. Creating a formula with cell references is useful because you can update data in your worksheet without having to rewrite the values in the formula.
If you change a value in either B1 or B2, the total will automatically recalculate.
Excel will not always tell you if your formula contains an error, so it's up to you to check all of your formulas. To learn how to do this, you can read the Double-Check Your Formulas lesson from our Excel Formulas tutorial.