What Do You Mean by Equations in Excel?

Explanation

In an excel equation, we use two things:

  • Cell ReferencesOperators

Cell references are cells like A1, B1, or range of cells A1:A3 and so on, whereas operators are the basic operators such as + for sum – for subtraction * for multiplication and so on.

Excel can execute formulas such as addition and subtraction like a calculator. However, one of the most useful features of  MS Excel is the ability to calculate using a cell address to represent a value in a cell.

It is the basic definition of the cell referenceCell ReferenceCell reference in excel is referring the other cells to a cell to use its values or properties. For instance, if we have data in cell A2 and want to use that in cell A1, use =A2 in cell A1, and this will copy the A2 value in A1.read more.

Excel uses both cell reference and basic operators to make an equation.

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How to Use Equations in Excel? (with Examples)

To make an equation in Excel, we need to keep three things in mind:

  • Every equation starts with an equals sign.Excel uses cell addresses as values in excel.Operators are used to making an equation.

Example #1

I have had my monthly budget for five months. The budget includes rent, food, electricity, credit card, and car data.

In the first example, we will create an equation for the sum or addition of the bills for each month.

Also, an inbuilt function in Excel gives us the same result, but it saves us the time of giving each cell reference one at a time.

  • In cell B7, we must start typing an equal sign and add each cell reference from B1 to B6 with a + operator. When we press enter, we get the total spending done in January. In the above two steps, we used cell references and an operator + for addition, and we created the equation as =B2+B3+B4+B5+B6, which gave us our result.

In the above two steps, we used cell references and an operator + for addition, and we created the equation as =B2+B3+B4+B5+B6, which gave us our result.

  • Step #1 – In cell C7, we should start typing an equals to sign and type sum, then press the “Tab” key. As a result, it opens an inbuilt sum function for us.

  • Step #2 – Now, we must select the range of cells from C2 to C6 and press the “Enter” key.

It may also give the addition of total money spent in February.

  • Step #3 – We may repeat the same process for March and April and get the total money paid for the respective months.

I have my money spent on all the months.

Example #2

The above example was a simple addition using equations. Let us make a complex equation.

We want Excel to inform us if the money spent was high or average. For example, if the amount paid for five months is above $10,000, it should show as “High” or “Average.” The operators used in this type of equation are “IF Statements.”

  • Step #1 –  First, we need to total the money spent on each bill. In cell G2, we will create an equation for the addition of the money spent on rent for five months. We start by typing an equals sign, typing Sum, and pressing the “Tab” button.

  • Step #2 – Select the cell references B2 to F6 and press the “Enter” key.

  • Step #3 – We repeat the same addition equation for every bill.

  • Step #4 – Now, in cell H2, we must type an equals sign and type “IF,” then press the “Tab” button

  • Step #5 – To better understand the IF equation, we need to click on”fx” in the function address bar, and consequently, a dialog box may pop up.

  • Step #6 – In the logical testIn The Logical TestA logical test in Excel results in an analytical output, either true or false. The equals to operator, “=,” is the most commonly used logical test.read more, we must insert our logic: the total of bills is greater than $10,000. Then, select range G2 to G6 and insert operator “>” greater than and type $10,000.

  • Step #7 – If the value is true means the total is greater than $10,000, and we want it to show as “High” or else “Average.”

  • Step #8 – As we provide Excel values in the string, we must start and end it with inverted commas. After that, click on “OK.”

  • Step #9 – Then, drag the formula to cell H6, and we may have our final output.

In the above example, we have used cell references and IF statements as an operator to make an equation.

Things to Remember

  • We must always remember to start an equation with an equal sign.Creating an equation with cell reference is useful because we can update our data without having to rewrite the formula.Excel may not always tell us if our equation is wrong or not. So it is up to us to check all of our equations.

This article is a guide to Equations in Excel. Here, we discuss how to create simple formulas in Excel using SUM and IF formula examples in Excel and downloadable Excel templates. You may also look at these useful Excel tools: –

  • Two-Variable Data Table in ExcelExcel Dynamic Named RangeSentence Case in Excel