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Excel Formula Vs Function

Excel Formula Vs Function : 

Once the question I get asked about a lot it when it comes to Excel is just what is the difference between a Formula and a Function? In this article, I will discuss the differences and go through some examples.

A Formula in Excel can be described as a statement written by a spreadsheet user that requires a calculation to generate a specific result. These formulas can be as simple or complex as the users want.

 

A Formula can contain values, references to cells, defined names and functions - but more on the latter.

 

 

Let's start at the beginning. An Excel formula must start with an equal = sign.

If you do not enter this character, Excel will take your cell entry as text and no calculation will be performed on your cell entries.

 

So after the equal sign, a formula will then include the cell reference or address of the values ​​that will be manipulated or calculated using various operands that are in between.

These operands are standard mathematical operators that you will know: - multiplication, Additions, division, subtraction and exponents.

 

Read also - The five best Excel functions for beginners

 

An example of a simple formula is 

 

=A1+B1 which is typed into cell A2

This adds to the contents of cell A1 and B1 and shows the result in cell A2.

In summary, an Excel formula is written directly in the formula field, they do not have built-in guides, they cannot be nested and they are usually simple calculations.

The Excel function, on the other hand, is a predefined set of instructions built into Excel that will perform some type of operation to provide and output value. Another way to explain a function is a formula that has already been written for you in Excel. 

The great thing about features is that they can be nested within each other, used to simplify complicated formulas and have built-in wizard to guide the user in the different parts of the function.

All of these pre-programmed functions are grouped in the Formulas tab. Just use the Formulas tab to access them, or you can click the insert function fx button to bring up the feature dialog box

There are three ways to start using a function, just start typing the action you want to perform, e.g. SUM, AVERAGE, etc., or you can select the category if the calculation, for example, date and time, financial or TEXT and finally you can scroll about all the available options.

So if we take the same example as above, a function that would generate the same result and write the formula would be

 

= SUM (A1: B1) this sums the contents of A1 and B1 and shows the cell contents of A2.

So can you combine the two? Yes, you can, and often do users to simplify more complicated calculations. Let's look at an example or two.

 

  1. = A2 + B2
  2. = SUM (D2: D4) / 10
  3. = IF (A1 = <5, "Less than", "Not less than")

All of the above are formulas, but some contain other functions such as example 2 and example 3 as well as operators such as plus and minus to give an output.

That's it, it's really that simple.

 

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