What is a formula in Excel

A formula is a type of equation. An equation says that two things are equal, that is why in Excel a formula always starts with ‘=’. A formula shows the correlation between two or more variables.

Formula in a spreadsheet

A formula in a spreadsheet can be built up from the following components:

• Constants
• Values
• Functions
• Operator signs
• Cell references

Excel functions

A function in Excel is also a type of formula, but it is preset to help perform mathematical, statistical and logical operations. A formula can contain one or more functions.