Differentiate between formula and function.
Answers
A Formula is an equation designed by a user in Excel, while a Function is a predefined calculation in the spreadsheet application. This guide will walk you through Formula vs Function in Excel so you know exactly what the similarities and differences are.
Excel enables users to perform simple calculations such as finding totals for a row or column of numbers. Formulas and functions can be useful in more complex situations, including calculating mortgage payments, solving engineering or math problems, and creating financial models.
Examples of a Formula
When a user types an equals sign in a cell, they are starting to create a formula.
Examples of a formula include:
=4+3
=A3+C9
=B7+B8-(4*2)+1 [see screenshot below]
Examples of a Function
When a user types an equals sign followed by a predefined set of letters (or clicks on the Fx button in the formula bar), a function begins to be implemented.
=SUM(A3:A27)
=AVERAGE(F4:F8) [see screenshot below]
=NPV(0.12,A5:G5)
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