Learn the difference between a relative absolute cell reference in Excel and an absolute cell reference in Excel in this free lesson.
There may be times when you do not want a cell reference to change when filling cells. Unlike relative references, absolute references do not change when copied or filled. You can use an absolute reference to keep a row and/or column constant.
An absolute reference is designated in a formula by the addition of a dollar sign ($). It can precede the column reference, the row reference, or both.
You will generally use the $A$2 format when creating formulas that contain absolute references. The other two formats are used much less frequently.
When writing a formula, you can press the F4 key on your keyboard to switch between relative and absolute cell references, as shown in the video below. This is an easy way to quickly insert an absolute reference.
In our example, we'll use the 7.5% sales tax rate in cell E1 to calculate the sales tax for all items in column D. We'll need to use the absolute cell reference $E$1 in our formula. Because each formula is using the same tax rate, we want that reference to remain constant when the formula is copied and filled to other cells in column D.
You can double-click the filled cells to check their formulas for accuracy. The absolute reference should be the same for each cell, while the other references are relative to the cell's row.
Be sure to include the dollar sign ($) whenever you're making an absolute reference across multiple cells. The dollar signs were omitted in the example below. This caused Excel to interpret it as a relative reference, producing an incorrect result when copied to other cells.