 # 3.5 Creating Basic Formulas in Excel

Now that we have got cell references at just kind of a high level an introductory level, I know some of you have been using them forever.

Some of us are newer into the system.

If you have got any questions on it again jump into the review section ask your questions there, I am right there I love answering questions. I love seeing what everybody is learning.

So now that we got cell references down let us take-a-look at building basic calculations.

We are going to do some math, for me math was never my strong suit going through school it was like that period of the day that I just wanted to be somewhere else right. Do an addition subtraction multiplication. When I got into algebra and not then my mind just exploded, what is going on here?

The nice thing is as long as we know what we want to do, I want to add some numbers, I want to do some multiplication, I want to do some division as long as we understand what it is that we want to do and what we want our outcome to be Excel will do the math for us, It is like a calculator, It can do so much for us.

Now we are going to start out with the basic building block once again understanding basic formulas beats basic mathematical operators performed inside of an Excel spreadsheet and then as we continue through the book we are going to get into more and more and more advanced topics as far as formulas functions and calculations are concerned. So, let us start out with some basics here.

So I want to be able to start out with a calculation that gives me the sum and we are going to do some additions some of January, give me the total for January, give me the total for February for March and so on.

Now here is where the prior lecture comes into play. I am jump in a cell B8, that is my total for January. We talked about a couple of different types of data that you can input into an Excel document. You have text or alpha characters you add numeric you had dates, now here is a fourth one we can input what Excel considers formulas or calculations.

In order for Excel to recognize that what you are about to do or what you are performing here is a calculation you start your calculations with a specific character. In this case I am going to start it with an equal sign “=”. This is true from the most basic like what we are about to do here to the most advanced calculation that you can perform inside of Excel, you start them with an equal sign “=”.  Now, I want to build add up those numbers for January. I am just doing math. There is going to be a calculation and I am just taking the numbers and performing some additions on those numbers once I am done I hit my Enter key and there is my results. You are thinking well that is a lot of work that is a lot of work right. I made the correction, but it is a lot of work, there is a lot of things that can go wrong.

What happens if these numbers in that cells are update? You remember the previous discussion that we had right on cell references.

Now, start our formula:

We are going to inform a cell that we are creating a calculation equals or equal sign “=” in there.

Now I am going to use the cell references (B4, B5, B6, B7) You can do whatever type of math you do your subtraction multiplication your division whatever it is.

Now, I want you to complete the rest of them. Get some practice in here, jump over to C8 Add that up jump over to D8 add up. Then I want you to hop up to the E column, create a formula.

And then we are just going to use a cell-references. Try it out, complete that, get a feel for it.

I am going to take it even a step further, I know some of you are waiting for some other methods on how to complete this, because this is still intensive right.

What if you had hundreds or thousands of records? I definitely do not want to do that, I am not typing out each and every cell reference.

So, some other ways to build and perform these calculations as well and streamline our efforts but for now we are building that foundation.

We are getting each and every little step in there so that we know exactly what is going on inside of Excel.

Get this done. Did your calculations in there add up those figures then we will jump into the next lecture and I want to take calculations even a step further.