Learning Outcome III:

At the end of the lesson, the students should be able to:

 Create a simple formula in Excel
 Create a complex formula in Excel
Topics: Formulas
 Introduction to formulas
 Creating more complex formulas

INTRODUCTION TO FORMULAS

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

Using Arithmetic Formulas

Arithmetic formulas are by far the most common type of formula. They combine
numbers, cell addresses, and function results with mathematical operators to perform
calculations.
Operator Name Example Result
+ Addition =10+5 15
- Subtraction =10-5 5
- Negation =-10 –10
* Multiplication =10*5 50
/ Division =10/5 2
% Percentage =10% 0.1
^ Exponentiation =10^5 100000

Using Comparison Formulas

A comparison formula is a statement that compares two or more numbers, text strings,
cell contents, or function results. If the statement is true, the result of the formula is given the
logical value TRUE (which is equivalent to any nonzero value). If the statement is false, the
formula returns the logical value FALSE (which is equivalent to zero).
Operator Name Example Result
= Equal to =10=5 FALSE
> Greater than =10>5 TRUE
< Less than =10<5 FALSE
>= Greater than or equal to ="a">="b" FALSE
<= Less than or equal to ="a"<="b" TRUE
<> Not equal to ="a"<>"b" TRUE
Using Text Formulas
 1

A text formula is a formula that returns text. Text formulas use the ampersand (&)
operator to work with text cells, text strings enclosed in quotation marks, and text function
results.
One way to use text formulas is to concatenate text strings. For example, if you enter the
formula ="soft"&"ware" into a cell, Excel displays software. Note that the quotation marks and
the ampersand aren’t shown in the result. You also can use and combine cells that contain text.
For example, if A1 contains the text Ben and A2 contain Jerry, entering the formula =A1&" and
"&A2 returns Ben and Jerry.

Entering and Editing Formulas

1. Select the cell in which you want to enter the

formula.
2. Type an equal sign (=) to tell Excel that you’re
entering a formula.
3. Type the formula’s operands and operators.
4. Press Enter to confirm the formula.
 If the result of a formula is too large to be
displayed in a cell, it may appear as pound signs (#######) instead of a value. This
means the column is not wide enough to display the cell content. Simply increase the
column width to show the cell content.

Copying Formulas
Like many things in Excel, there is more than one way to copy formulas.

A. To Copy Formulas Using Autofill

1. Click in the cell that contains the formula.
2. Position the mouse on the Autofill handle (a thin black cross will appear).
3. Click and drag to copy the formula.
B. To Copy Formulas Using Copy and Paste
1. Click in the cell that contains a formula.
2. Select Copy on the Home Ribbon in the Editing group.
3. Highlight the cell where you would like to paste the formula.
4. Select Paste on the Home Ribbon in the Editing group

Activity 3.1
 2

1. Do the Challenge tab below:

2. You can change the picture of your choice.

3. Name the worksheet Challenge.

4. Create a formula in cell D4 that multiplies the quantity in B4 by the price per unit
in cell C4.
5. Copy the formula in cell D4 to cells D5:D7.
6. Change the price per unit for the fried plantains in cell C6 to $2.25. Notice that
the line total automatically changes as well.
7. Edit the formula for the total in cell D8 so it also adds cell D7.
8. When you're finished, your workbook should look like this:

9. Save the workbook in your computer, use Your Family Name – Ativity3.1 as the
filename.
 3

CREATING MORE COMPLEX FORMULAS

You may have experience working with formulas that contain only one operator, such
as 7+9. More complex formulas can contain several mathematical operators, such as 5+2*8.
When there's more than one operation in a formula, the order of operations tells Excel which
operation to calculate first.

The order of operations

Excel calculates formulas based on the following order of operations:
1. Operations enclosed in parentheses
2. Exponential calculations (3^2, for example)
3. Multiplication and division, whichever comes first
4. Addition and subtraction, whichever comes first

Step by step order of operations:

1. Calculate anything inside parentheses.

2. Look to see if there are any exponents.

3. Solve any multiplication and division, working from left to right. Because the
division operation comes before the multiplication, it's calculated first:

4. Solve our remaining multiplication operation:

5. Next, we'll calculate any addition or subtraction, again working from left to right.
Addition comes first: 10+3=13.

6. Finally, we have one remaining subtraction operation: 13-1=12.

 4

To create a complex formula

1. Select the cell that will contain the formula.
Example: select cell C5.

2. Enter your formula.

Example: To compute the Subtotal type =B3*C3+B4*C4. This formula will follow
the order of operations, first performing the multiplication: 2.79*35 = 97.65 and 2.29*20
= 45.80. It then will add these values to calculate the total: 97.65+45.80.

3. Double-check your formula for accuracy, then press Enter on your keyboard. The
formula will calculate and display the result.
Example: the result shows that the subtotal for the order is $143.45.

 You can add parentheses to any equation to make it easier to read. While it won't
change the result of the formula.
Example, we could enclose the multiplication operations within parentheses to
clarify that they will be calculated before the addition.
 5

Activity 3.2
1. Do the challenge worksheet below:

In the invoice, you will find the amount of tax for the order, the order's total, and the order's
total if you were given a 10% discount.

2. You can change the picture of your choice.

3. Compute the Line total of the different menu items.

4. In cell D7, create a formula that calculates the tax for the invoice. Use a sales tax rate
of 7.5%.
5. In cell D8, create a formula that finds the total for the order. In other words, this
formula should add cells D3:D7.
6. In cell D9 create a formula that calculates the total after a 10% discount.
7. When you're finished, your spreadsheet should look like this:

8. Save the workbook in your computer, use Your Family Name – Ativity3.2 as the
filename.
 6

References:

GCFGlobal (2016). Excel 2016 Basics. https://edu.gcfglobal.org/en/excel2016/

Fedries, P. M. (2016). Excel 2016 Formulas and Functions. MrExcel Library.

https://www.managementboek.nl/ code/inkijkexemplaar/ 9780789755643/excel-2016-
formulas-and-functions-engels-paul-mcfedries.pdf

Montclair State University (2016)). Introduction to Microsoft Excel 2016.

https://www.montclair.edu/media/montclairedu/oit/documentation/office2016/ Introduction-
to-Excel-2016.pdf