One of Excel's core features is the ability to perform calculations using functions and formulas. Although these terms are often used interchangeably, they have distinct meanings. Let's learn the difference through the following article!
What are Excel formulas?
In Microsoft Excel, a formula is an expression used to perform calculations or manipulate data in a spreadsheet. Formulas can perform basic arithmetic operations, such as addition, subtraction, multiplication, and division, as well as more complex operations. The main function of a formula is to process input data – such as cell references, numbers, or text – and return results.
Formulas in Excel always begin with an equals sign (=), which tells Excel that the following expression is used for calculation. For example, if you want to sum the values in two cells, you can enter a formula =B2+C2in there B2 and C2 is the cell reference.
What are Excel functions?
An Excel function is a predefined, built-in formula designed to perform specific tasks efficiently. Functions simplify complex operations by allowing users to enter values, called arguments, and get results without having to write detailed formulas themselves.
Excel provides a large library of functions that meet a variety of needs, including mathematical and statistical calculations, text manipulation, logical testing, date and time operations, and financial analysis. Functions operate within formulas, so a formula begins with an equals 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+A5you just need to use =SUM(A1:A5). Note that both are formulas, but only the latter uses a function, in this case the SUM function.
Difference between function and formula in Excel
Although formulas and functions look similar, they serve slightly different purposes and can often be used in combination to perform multiple calculations.
The formulas provide maximum flexibility because you can customize them to fit your specific needs. For example, a formula like =A1+B1*2 lets you define exactly how the values in those cells interact, giving you complete control over the calculation process. This flexibility is especially useful when you need to combine multiple calculations in a single formula.
In contrast, functions are built-in tools designed to simplify and expedite common tasks. Instead of building complex logic from scratch, you can use functions to perform specific calculations with minimal effort. For example, instead of manually calculating the average value using a formula like =(A1+A2+A3)/3you can use the AVERAGE function (=AVERAGE(A1:A3)) to complete tasks more efficiently.
The main difference between these two formulas is that formulas are custom expressions created by the user, while functions are pre-written calculations in Excel that you can use in formulas. The function exists to reduce the risk of errors and help save time in Excel, especially when performing advanced calculations.
Of course, not all calculations have built-in functions in Excel. For example, Excel functions can convert text to upper and lower case, but no Excel functions convert text to sentences. In such cases, you will need to create your own formula, combining built-in Excel functions to get the desired result.
Understanding the difference between formulas and functions may seem abstract at first, but it's an important concept to grasp before delving into Excel and coming up with solutions to unique spreadsheet challenges.
