Excel formulas for beginners: the 12 you need first

Updated 30 October 2026

You don't need hundreds of functions to be useful in Excel. A dozen formulas cover most of what everyday spreadsheets do: adding things up, averages, percentages, rounding money, and making a simple decision. Learn them in this order, because each one builds on the last. Every section links to a short lesson where you practise in a real grid and get told exactly what went wrong.

What is an Excel formula?

A formula is a calculation in a cell. It always starts with =, and it can use numbers, cell names such as B2 and functions such as SUM. A cell's name is its column letter and row number: B2 is column B, row 2. If that is new, start with Cells and cell names; it takes two minutes.

1. How do you add, subtract, multiply and divide?

Type = and the sum, using +, -, * for multiply and / for divide:

=25*4
✎ Shows 100. Press Enter to finish the formula.

Practise in Your first formula.

2. Why use cell names instead of numbers?

Point at the cells instead of typing their values. If B2 holds a price and C2 a quantity, this gives the line total, and it updates by itself when either number changes:

=B2*C2

Then copy it down the column: drag the small square at the bottom right of the cell, or select the cells and press Ctrl+D. Excel changes B2 to B3, B4 and so on for each row. See Using cell names in formulas and Copying a formula down.

3. SUM: how do you add up a column?

=SUM(B2:B8)
  • B2:B8: number1
✎ B2:B8 means every cell from B2 down to B8.

The colon makes a range, and ranges are how every function works on lots of cells at once. Adding up a column with SUM is your first function lesson.

4 to 6. AVERAGE, MAX and MIN

Same range, different question: the average, the highest and the lowest.

=AVERAGE(B2:B8)
=MAX(B2:B8)
=MIN(B2:B8)

Practise all three in AVERAGE, MAX and MIN.

7 and 8. How do you count cells with COUNT and COUNTA?

COUNT counts cells that contain numbers. COUNTA counts cells that are not empty, including text. To count how many people are on a list, use COUNTA on the names; to count how many have a score, use COUNT on the scores:

=COUNTA(A2:A50)

The difference trips everyone up once. Counting with COUNT and COUNTA shows when each one is right.

9. How do you round to two decimal places?

Formatting a cell to show two decimals only changes how it looks; the full value is still used in later sums. ROUND changes the value itself, which matters for money:

=ROUND(B2/3,2)
  • B2/3: number
  • 2: num_digits
✎ Split a bill three ways, rounded to the penny.

Practise it in Rounding with ROUND.

10. How do you work out a percentage?

Divide the part by the total, then format the cell as a percentage (the % button on the Home tab). Excel stores 25% as 0.25, so there is no need to multiply by 100:

=B2/$B$9
✎ Each row's share of the total in B9. The $ signs keep B9 fixed when you copy it down.

See Percentages.

11. How do you join text from two cells?

The & sign joins text. Put a space in quotes between the parts:

=A2&" "&B2
✎ First name in A2, last name in B2: Ann Smith.

Practise in Joining text with &.

12. IF: how does Excel make a decision?

A comparison such as =B2>=50 answers TRUE or FALSE (Comparisons: TRUE or FALSE). IF turns that answer into whatever you want to show:

=IF(B2>=50,"Pass","Fail")
  • B2>=50: logical_test
  • "Pass": value_if_true
  • "Fail": value_if_false

Read it as: if B2 is at least 50, show Pass, otherwise show Fail. IF: making a decision walks through it.

Which rules do beginners need to know?

Excel follows the maths order of calculation

Multiplication and division happen before addition and subtraction, so =2+3*4 is 14, not 20. Use brackets to change the order: =(2+3)*4 is 20. A common slip is =B2+C2/2 when you meant the average of two cells, =(B2+C2)/2. Practise in Brackets and the order of calculation.

$ locks a cell when you copy a formula

When you copy a formula down, every cell name moves with it. That is usually what you want, except for a cell that should stay put, like a tax rate in E1. Put $ before the column letter and row number, or press F4 while the cursor is on it:

=B2*$E$1

This is the skill that makes later formulas, especially lookups, work. Locking a cell with $ shows the range staying put versus sliding away.

What should you learn next?

Once these feel easy, the next step is formulas that look at a whole table: COUNTIF and SUMIF count and add up only the rows that match, IF inside IF gives more than two answers, and lookups pull data from one table into another. When you get there, XLOOKUP vs VLOOKUP explains which lookup to learn first.

The quickest way to make all of this stick is to type it. The free lessons give you a spreadsheet in your browser, walk you through each formula once, then check your own answer on new data.

Revision Q&A

(click a question) Guide Q&A
Q1: What is the difference between a formula and a function? expand_more

A formula is anything you type that starts with =, such as =B2*C2. A function is a named calculation you use inside a formula, such as SUM or IF. So =SUM(B2:B8) is a formula that uses the SUM function.

Q2: Why does my formula show as text instead of the answer? expand_more

Either it does not start with =, there is a space before the =, or the cell was formatted as Text before you typed. Set the format to General, click into the cell, press F2 and then Enter.

Q3: What does #DIV/0! mean? expand_more

The formula divided by zero or by an empty cell. Check the cell you are dividing by. =IF(C2=0,"",B2/C2) shows a blank instead while the data is incomplete.

Q4: Why does my cell show ##### instead of a number? expand_more

The column is too narrow to show the number. Double-click the border to the right of the column letter to widen it. It is not an error.

Q5: Should I use SUM or just add cells with +? expand_more

For two or three cells either works. For a column of numbers, SUM is shorter, harder to get wrong, and includes new rows inserted inside the range. SUM also skips text, where + gives a #VALUE! error.

Q6: Do these formulas work in Google Sheets? expand_more

Yes. Every formula on this page works the same way in Google Sheets, LibreOffice Calc and Excel for the web.

Q7: What should I learn after these? expand_more

COUNTIF and SUMIF (count and add up only the rows that match), IF with more than two answers, and then lookups with XLOOKUP or VLOOKUP, which pull data from one table into another.

Know someone fighting with a spreadsheet? Send them this page.