creating complex formulas

7/23/2019 Creating Complex Formulas

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Creating Complex Formula4

Introduction

Excel is a spreadsheet application and is intended to be used

to calculate and analyze numerical information such ashousehold budgets, company fnances, and inventory. To dothis, you need to understand formulas.

In this lesson, we’ll discuss complex formulas that usemultiple mathematical operators, as well as those thatuse absolute and relative references.

Complex formulas

Complex formulas defined

Simple formulas have one mathematical operation. Complexformulas involve more than one mathematical operation.

Simple formula: =2+2Complex formula: =2+2*8

To calculate complex formulas correctly, you must perform certainoperations efore others. This is defined in the order of operations.



The order of operations

The order of mathematical operations is important. If you enter aformula that contains several operations, !xcel "no#s to #or" thoseoperations in a specific order. The order of operations is$

1. Operations enclosed in parenthesis. Exponential calculations !to the power o"#

$. %ultiplication and division, whichever comes frst

&. 'ddition and subtraction, whichever comes frst

% mnemonic that can help you rememer thisis Please Excuse My Dear Aunt Sally &'.!.(.).%.S.

Example 1sin this order, let-s see ho# the formula 20/!"#$%!"2 is calculated inthe follo#in rea"do#n$

Example 2

&'&%2()



Is the ans#er 2 or /0 1ell, if you calculated in the order in #hich thenumers appear, +*2, you-d et the #ron ans#er$ 2. 3ou mustfollo# the order of operations to et the correct ans#er.

To calculate the correct answer:

1. (alculate $) frstbecause multiplication comes before addition in theorder o" operations. The answer is *.

. 'dd the answer obtained in step 1, which is *, to thenumber $ that opened the e+uation. In other words, add $ *.

$. The answer is -.

4. Complex formulas5. 6efore movin on, let-s explore some more formulas to ma"e sure

you understand the order of operations y #hich !xcel calculatesthe ans#er.

4*2/4

Multiply &) beforeper" ormingthe divisionoperationbecause themultiplication sign comesbe"ore the division sign.

The answer is .

4/2*4

Divide & by beforeper"ormingthe multiplicationopera

tion because the divisionsign comes be"ore themultiplication sign. Theanswer is .

4/(2*4) /er"orm the operationinparentheses !)&#frst, anddivide & by this



result. The answer is 0..

4-2*4

Multiply )& be"oreper"ormingthe subtraction operation because the

multiplication sign is o" ahigher order than thesubtraction sign. Theanswer is 2&.

Creatin complex formulas

!xcel automati*all+ follo#s a standard order of operations in a

complex formula. If you #ant a certain portion of the formula to ecalculated first, put it in parentheses.

Example of how to write a complex formula:

• (lic3 the cell where you want the "ormula result toappear. In this example, 4*.

• Type the e+uals sign !5# to let Excel 3now a "ormula is

being defned.

• Type an open parenthesis, or !.

• (lic3 on the rst cell to be included in the "ormula !6*,

"or example#.

• Type the addition si!n (") to let Excel 3now that an add

operation is to be per"ormed.

• (lic3 on the second cell in the "ormula !67, "or

example#.

• Type a closed parentheses #.



• Type the next mathematical operator, or the division

symbol (/), to let Excel 3now a division operation is to beper"ormed.

• Type an open parenthesis, or !.

• (lic3 on the third cell to be included in the "ormula !8*,

"or example#.

• Type the addition si!n (") to let Excel 3now that an add

operation is to be per"ormed.

• (lic3 on the fourth cell to be included in "ormula !87, "or

example#.

• Type a closed parentheses #.

• #mportant$ /ress %nter, or clic3 the %nter button on

the 9ormula bar. This step ends the "ormula.

To sho# fe#er decimal places, you can clic" the De*reaseDe*imal place command on the 7ome ta.

!xcel ,ill not al,a+s tell +ou if your formula contains an error, so it-sup to you to chec" all of your formulas. To learn ho# to do this, you



can read the Double-&hec' our ormulas lesson from

our %xcel ormulas tutorial.

1hat is an asolute reference0

In earlier lessons, we saw how cell references in

"ormulas automatically adust to new locations when the"ormula is pasted into di:erent cells. This is called a relativereference.

;ometimes when you copy and paste a "ormula, you don<twant one or more cell re"erences to change. 'n absolute

reference solves this problem. +bsolute cell references ina "ormula al,ays re"er to the same cell or cell range in a"ormula. I" a "ormula is copied to a di:erent location, theabsolute re"erence remains the same.

'n absolute re"erence is designated in the "ormula by theaddition o" a dollar si!n (). It can precede the columnre"erence or the row re"erence, or both. Examples o" absolute

re"erencing include=

http://www.gcflearnfree.org/excelformulas/7

http://www.gcflearnfree.org/excelformulas



http://www.gcflearnfree.org/excelformulas/7



To create an absolute reference:

• ;elect the cell where you wish to write the "ormula !in this

example, 4#.

• Type the e+uals sign !5# to let Excel 3now a "ormula is

being defned.

• (lic3 on the rst cell to be included in the "ormula !9,"or example#.

• Enter a mathematical operator !use the multiplication

symbol "or this example#.

• (lic3 on the second cell in the "ormula !(, "or

example#.

• 'dd a > sign be"ore the ( and a > sign be"ore the to

create an absolute re"erence.

• (opy the "ormula into 4$. The new "ormula should read

59$)>(>. The 9 re"erence changed to 9$ because it is arelative re"erence, but ( remained constant because you

created an absolute re"erence by inserting the dollar signs.



?hen writing a "ormula, you can press the 4 3ey on your3eyboard to switch between relative and absolute cellre"erences. This is an easy way to +uic3ly insert an absolutere"erence.

Challene

se the Inventory or any !xcel #or"oo" you choose to complete thischallene.

• (reate at least one complex "ormula that usesthe addition and division operations.

• (reate at least one complex "ormula that

uses parentheses and a multiplication operation.• (reate a "ormula that uses an absolute re"erence.

creating complex formulas

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