Using formulas to calculate values in cells is one of the most important functions used in MS Excel. When the values that makes up a formula change, the cell containing the formula’s total value is automatically recalculated.

**Instructions to create a formula in excel**

**Simple Maths formulas**

**Step 1**: Click on the Desktop shortcut or access the Windows start menu for opening Microsoft Excel. You would then get an Excel Workbook that would have three blank worksheets named as Sheet 1, Sheet 2, and Sheet 3.

**Step 2**: Each column has a title that Excel uses in formulas, and each row has a number. Each cell’s name is made up of the corresponding row number and the column letter. For instance, the first cell at the top of the worksheet is A1, the next cell to the right is B1, and so on.

**Step 3**: Start typing numbers that are needed to be calculated in Sheet 1. They can be typed in a single column or across the rows. There is also the option of typing your data in more than one row or column.

**Step 4**: Put the cursor in the first empty cell below the data in your column or at the end of the first row.

**Step 5**: By typing in the equal sign, begin every formula and Excel would immediately display it in the Formula bar.

**Step 6**: Click on the first cell that you want to include in the formula. Type a mathematical function; for instance use the plus sign on the keyboard if you’re adding numbers, use the minus sign in case of subtraction, use the slash sign for division, and the asterisk sign for multiplication.

**Step 7**: Click each cell that you want in your formula and type the arithmetic function you need. When your formula is finished, click the green check mark at the beginning of the formula bar.

**AutoSum:** For addition of one column or row of numbers, the AutoSum function is used.

**Step 1**: In the first empty cell after a row or column of numbers, place your cursor and then click on the AutoSum button, which is resembled by the letter E and is located on the editing toolbar.

**Step 2**: To complete the formula, click on the green check mark in the formula bar.

**Use Excel functions in Formulas**

**Step 1**: By placing your cursor in an empty cell, you can make a formula with Excel’s built-in mathematical functions. To start the formula, type the equal sign, choose Formulas, and choose Insert Function in case of Excel 2007. If you have Excel 2003, open the Insert menu and select the ‘Function’ option.

**Step 2**: Select the Function you want; to see all the functions, select ‘All’ from the category drop down box.

**Step 3**: After you select the function, click on it to insert it into the formula.

**Step 4**: The formula is completed by clicking each cell that is needed to be included in the formula. Once you finish adding cells, click on the green check mark and the results of the function’s calculation are displayed.