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# Chapter 18. Building Basic Formulas

Most Excel fans don’t turn to the world’s leading spreadsheet software just to create nicely formatted tables. Instead, they rely on Excel’s industrial-strength computing muscle, which lets you reduce reams of numbers to neat subtotals and averages. Performing these calculations is the first step in extracting meaningful information from raw data.

Excel provides a number of ways to build formulas, letting you craft them by hand or by pointing-and-clicking them into existence. In this chapter, you’ll learn all of Excel’s formula-building techniques. You’ll start by examining the basic ingredients that make up any formula, and then take a close look at the rules Excel uses when evaluating a formula.

# Creating a Basic Formula

First things first: What exactly do formulas do in Excel? A formula is a series of instructions that you place in a cell in order to perform some kind of calculation. These instructions may be as simple as telling Excel to sum up a column of numbers, or they may incorporate advanced statistical functions to spot trends and make predictions. But no matter your end goal, all formulas share the same basic characteristics:

• You enter each formula into a single cell.

• Excel calculates the result of a formula every time you open a spreadsheet or change the data a formula uses.

• Most formula results are numbers, but you can create formulas that have text or Boolean (true or false) results, too.

• To view any formula (for example, to gain some insight ...

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