One of Excel’s core features is its ability to perform calculations using functions and formulas. Although these terms are often used interchangeably, they have distinct meanings. Let’s delve into the differences.
What is an Excel Formula?
In Excel, a formula is an expression used to perform calculations or manipulate data within a worksheet. Formulas can execute basic arithmetic operations, such as addition, subtraction, multiplication, and division, as well as more complex operations. The primary function of a formula is to process data inputs—such as cell references, numbers, or text—and return a result.
A formula in Excel always begins with an equal sign (=), indicating to Excel that the following expression is intended for calculation. For instance, if you want to sum the values in two cells, you can enter the formula =B2+C2, where B2 and C2 are the cell references.
What is an Excel Function?
An Excel function is a predefined, built-in formula designed to perform specific tasks efficiently. Functions simplify complex operations by allowing users to input values, known as arguments, and obtain results without needing to write detailed formulas themselves.
Excel offers a vast library of functions that cater to various needs, including mathematical and statistical calculations, text manipulation, logical tests, date and time operations, and financial analysis. Functions operate within formulas, so a formula begins with an equal sign (=), followed by the function name and parentheses containing the arguments.
For example, the SUM function is a popular choice for quickly adding numbers. Instead of writing =A1+A2+A3+A4+A5, you can simply use =SUM(A1:A5). Note that these are both formulas, but only the latter utilizes a function, in this case, the SUM function.
Formulas vs. Functions
While both formulas and functions may seem similar, they serve slightly different purposes and can often be used together to achieve a wide range of calculations.
Formulas offer maximum flexibility because you can customize them to suit your specific needs. For instance, a formula like =A1+B1*2 allows you to define exactly how the values in those cells interact, giving you full control over the calculation process. This flexibility is especially useful when you need to combine multiple operations within a single formula.
Functions, on the other hand, are built-in tools designed to simplify and expedite common tasks. Rather than constructing complicated logic from scratch, you can use a function to perform specific calculations with minimal effort. For example, instead of manually calculating an average with a formula like =(A1+A2+A3)/3, you can use the AVERAGE function (=AVERAGE(A1:A3)) function to accomplish the task more efficiently.
The main distinction between the two is that a formula is a custom expression created by the user, whereas a function is a pre-written calculation built into Excel that you can use in formulas. Functions exist to reduce the risk of errors and help save time in Excel, especially when performing advanced calculations.
Of course, not every calculation has a pre-built function in Excel. For instance, Excel functions can convert text to upper and lower case, but there’s no Excel function for converting text to sentence case. In such cases, you’ll need to create your own formula, combining built-in Excel functions to get your desired result.
Understanding the distinction between formulas and functions may initially seem abstract, but it is a crucial concept to grasp before delving into Excel and devising solutions for unique spreadsheet challenges.
source: MUO
