Microsoft Office · Beginner level

Beginner level · Module 4: Spreadsheet Basics in Excel · Lesson 2 of 3

Formulas and Basic Functions

Calculate totals, averages and differences with formulas that update automatically.

In this lesson you will

  • Write formulas with operators and cell references
  • Use SUM, AVERAGE, MIN, MAX and COUNT

Key concepts

formularelative referencefunctionfill handle

The lesson

A formula starts with = and calculates a result: =B2*C2 multiplies two cells. Because it refers to cells, the result updates automatically when a value changes — the main reason to use a spreadsheet instead of a calculator.

Functions are built-in formulas: SUM adds a range (=SUM(B2:B10)), AVERAGE finds the mean, MIN and MAX find the smallest and largest, COUNT counts numbers.

When you copy a formula down a column, its cell references adjust row by row. Check a few results by hand — a formula that refers to the wrong cell gives wrong answers silently.

Step by step

  1. Enter budget items and amounts in SSP.
  2. Calculate the total with SUM.
  3. Calculate the average daily spending and the largest expense.
  4. Change one amount and watch the totals update.

Practice activity

Build a monthly household or shop budget in SSP with totals, average daily spending and the largest expense.

Expected result: A budget whose totals update correctly when values change.

Check your understanding

  1. Why use =B2+B3 instead of typing =500+700?

    Show answer

    The result updates automatically when the cell values change.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.