The 15 Basic Excel Formulas Everyone Needs to Know
Learn how to add arithmetic, string, time series, and complex formulas in
Microsoft Excel.
Updated Sep 11, 2025 · 15 min read
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In Brief
Article Type: Excel formulas tutorial
Topic: 15 basic Excel formulas everyone should know
Audience: Beginners, professionals, and teams learning Excel
Includes: Step-by-step examples of SUM, AVERAGE, COUNT, VLOOKUP,
IF, CONCAT, and more
Key Concepts: Arithmetic, string, logical, and time-series formulas in
Microsoft Excel
Outcome: You learn essential Excel formulas to manage data, perform
analysis, and improve accuracy
Learn 15 essential Excel formulas, including SUM, AVERAGE, IF,
VLOOKUP, CONCAT, and more, to analyze data, save time, and boost
accuracy in your work.
What Is an Excel Formula?
Microsoft Excel is a popular tool for managing data and performing data
analysis. It is used for generating analytical reports, business insights, and
storing operational records. To perform simple calculations or analyses of
data, we need Excel formulas.
An Excel formula is an expression used to perform calculations or manipulate
data within an Excel spreadsheet. A formula always begins with an equal sign
(=), which tells Excel to interpret the entry as a calculation rather than plain
text. Formulas typically involve mathematical operations, cell references,
functions, and operators.
Some of the most important formulas worth knowing in Excel are basic
functions: SUM(), MIN(), MAX(), AVERAGE(), COUNT(), POWER(), CEILING(), FLOOR(), CON
CAT(), TRIM(), REPLACE(), SUBSTITUTE(), LEFT(), RIGHT(), MID(), UPPER(), LOWER(), PR
OPER(), NOW(), TODAY(), DATEDIF(), VLOOKUP(), HLOOKUP(), and IF(). See below for
guidance on each of these.
Later on, I'll also include examples of formulas that are different than built-in
functions. As you will see, and as defined in Microsoft support
documentation, a simple function like SUM() counts as a formula, but formulas
can also be simple arithmetic expressions or logical statements that don’t
necessarily use built-in functions.
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Explore essential Excel Formulas with hands-on exercises in our
Introduction to Excel course.
Why Are Excel Formulas Important?
Excel formulas are essential for several reasons:
1. Efficiency: They automate repetitive tasks, saving time and reducing manual
errors.
2. Data analysis: Excel's range of formulas enables sophisticated data analysis,
crucial for informed decision-making.
3. Accuracy: Formulas ensure consistent and accurate results, essential in
fields like finance and accounting.
4. Data manipulation: They allow for efficient sorting, filtering, and manipulation
of large datasets.
5. Accessibility: Excel provides a user-friendly platform, making complex data
analysis accessible to non-technical users.
6. Versatility: Widely used across various industries, proficiency in Excel
formulas enhances employability and career advancement.
7. Customization: Excel offers customizable formula options to meet specific
data handling needs.
In essence, Excel formulas are a foundational tool for effective data
management, analysis, and decision-making.
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How to Use Excel Formulas
Adding the Excel formula is relatively easy. It will come to you naturally if you
are familiar with any business intelligence software.
The most effective and fast way to use formulas is by adding them manually.
In the example below, we are calculating the BMI (Body Mass Index) of the
athletes shown in the table.
BMI = weight (KG)/ (Height (m))2
1. Choose the cell for the resulting output. You can use the mouse to select the
cell or use the arrow key to navigate.
2. Type = in the cell. The equal sign will appear in the cell and formula bar.
3. Type the address of the cell that we want to use for our calculation. In our
case, it is E2 (weight/KG).
4. Add divide sign /
5. To convert height from centimeters to a meter, we will divide the D2 by 100.
6. Take the squared ^2 of the height and press Enter.
Note: To get the address of any cell, you need to look at the column name (A,
B, C, … ) and combine it with a row number (1, 2, 3, …). For example, A2, B5,
and C12
That’s it; we have successfully calculated t