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Lesson 4. Performing Simple Calculations > Understanding Excel Formulas

Understanding Excel Formulas

One way to add calculations to an Excel workbook is to create your own formulas. Formulas typically are used to perform calculations such as addition, subtraction, multiplication, and division. More complex calculations are better left to Excel Functions, which is a built-in set of formulas that provide financial, mathematical, and statistical calculations. You learn more about functions in Lesson 6, "Performing Calculations with Functions."

Formulas that you create typically include cell addresses that reference cells on which you want to perform a calculation. Formulas also consist of mathematical operators, such as + (addition) or * (multiplication). For example, if you wanted to multiply two cells, such as C3 and D3, and then divide the product by 3, you would design a formula that looks like this:


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