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# Excel 2013

## Simple Formulas

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### Introduction

#### Video: Simple Formulas

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One of the most powerful features in Excel is the ability to calculate numerical information using formulas. Just like a calculator, Excel can add, subtract, multiply, and divide. In this lesson, we'll show you how to use cell references to create simple formulas.

#### Mathematical Operators

Excel uses standard operators for formulas, 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.

Standard operators

All formulas in Excel must begin with an equal sign (=). This is because the cell contains, or is equal to, the formula and the value it calculates.

#### Understanding Cell References

While you can create simple formulas in Excel manually (for example, =2+2 or =5*5) most of the time you will use cell addresses to create a formula. This is known as making a cell reference. Using cell references will ensure that your formulas are always accurate, because you can change the value of referenced cells without having to rewrite the formula.

Using cell references to recalculate a formula

By combining a mathematical operator with cell references, you can create a variety of simple formulas in Excel. Formulas can also include a combination of cell references and numbers, as in the examples below:

Examples of simple formulas