Entering and editing formulas
Formulas are used to perform calculations in a spreadsheet, including addition, subtraction, multiplication and division.
The main advantage of using formulas is that unlike a value that stays the same unless you edit it, the result of a formula will automatically recalculate itself in response to values in the spreadsheet being changed.
Formulas can be easily recognised in a spreadsheet as all formulas begin with an
equals sign =.
Formula operators
In order to create and interpret formulas, you will need to be able to recognise and enter the basic formulas operators:
| ( ) | Brackets | ^ | Exponent |
| + | Addition | * | Multiplication |
| - | Subtraction | / | Division |
Try it!
In Sheet 1 of the Sales report.xls file, enter a formula in cell D5 to calculate the difference between Sandra's actual sales and her target for Quarter 1. The formula is =B5-C5.
Create formulas to calculate the difference between Sandra's actual and target sales for Quarters 2 and 3 in cells G5 and J5 respectively.
In cell K5, create a formula to calculate Sandra's 'eligible for commission' total. This is achieved by adding together any positive differences between her actual and target sales for each quarter. In other words, any quarter where Sandra exceeds her target sales, the amount that she exceeded her target by is eligible for commission.
Calculate 'eligible for commission' totals for the other two salespeople in K6 and K7.
In cell L5, create a formula to calculate the amount of commission Sandra is to be paid.
The formula is =K5*L2.
Order of calculations - BEDMAS or BODMAS
In formulas where there is more than one operator, for example, an addition and a multiplication, Excel will not necessarily calculate the result by reading the formula from left to right.
Excel will follow a set rule for the order in which it performs calculations. BEDMAS or BODMAS are acronyms you can use to help you remember the order in which Excel will perform calculations.
| Letter | Stands for | Calculation order |
| B | Brackets | 1st |
| E or O | Exponents or Order | 2nd |
| D | Division | 3rd |
| M | Multiplication | |
| A | Addition | 4th |
| S | Subtraction |
Try it!
Apply the order of calculation rule to the formulas shown below and write in the result of the formula in the space provided.
| Formula | Formula result would be: |



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