Excel can be used to perform any type of calculation and creating a formula is the basis of the calculation. In this article, you will learn **how to create a formula in Excel** in **5** different ways.

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**5 Ways to Create a Formula in Excel**

In the following dataset, you can see the values for **Sales of Product A**, **Sales of Product B**, **Hourly Wages**, and **Total Working Hour**. Now, we have to calculate **Total Sales**, **Total Labor Expense**, **Net Income,** and **Income Per Product**. To do so, we will **create a formula in Excel**. Here, we will go through **5** easy methods to do the task, and we have used **Excel 365**. You can use any available Excel version.

**1. Using Constants and Operators to Create a Formula in Excel**

In this method, we will use constants and operators to **create a formula in Excel**. Constants are those values that are used in a calculation. Operators determine the calculation you are performing such as the **plus sign** for addition (**+**),** minus sign** for subtraction (**–**), **asterisk** for multiplication (*****), and **forward slash** for division (**/**).

**Steps:**

- For our dataset, to find out the
**Total Sales**we need to add**Sales of Product A**and**Sales of Product B**. - In the first place, we will insert an equal
**sign (=)**in cell**C6**. - Then, we will type the value of
**Sales of Product A**>> put**plus sign (+)**>> type the value of**Sales of Product B**.

- After that press
**ENTER**. - Therefore, you can see the result in cell
**C6**.

- After that, to find out the
**Total Labor Expense**, we will insert an equal**sign (=)**in cell**C9**. - Then, we will type the value of
**Hourly Wages**>> put an**asterisk**for multiplication (*****) >> type the value of**Total Working Hour**. - Afterward, press
**ENTER**. - As a result, you can see the result in cell
**C9**.

- In addition, to find out the
**Net Income**, we will insert an equal**sign (=)**in cell**C10**. - Furthermore, we will type the value of
**Total Sales**>> put a**Subtraction sign (-)**>> type the value of**Total Labor Expense**. - Afterward, press
**ENTER**. - As a result, you can see the result in cell
**C10**.

- Furthermore, to find out the
**Income Per Product**, we will insert an equal**sign (=)**in cell**C11**. - Along with that, we will type the value of
**Net Income**>> put the**forward slash**for division (**/**) >> type**2**. - Afterward, press
**ENTER**. - As a result, you can see the result in cell
**C11**.

**Note:**One disadvantage of this method is you have to change the constants in the formula every time you change the value.

**Read More:** **How to Create a Formula in Excel without Using a Function (6 Approaches)**

**2. Applying Cell References**

In this method, we will type cell references to **create a formula in Excel**. Instead of typing the constant, we can **refer to other cells**. The benefit of referring cells is that if you make any change in the referred cell, the value used in the calculation will automatically change.

**Steps:**

- First of all, to find the
**Total Sales**, put an**equal sign (=)**in cell**C6**. - After that, we will type the reference cell number
**C4**>> put a**plus sign (+)**>> type the reference cell number**C5**. - The cell you referred to will be highlighted in your worksheet.

- At this point, press
**ENTER**. - Therefore, you can see the result in cell
**C6**.

**Note:**Now, suppose there is a change in

**, if you make the change in cell**

*Sales of Product A***C4,**the

**value in cell**

*Total Sales***C6**will automatically change.

- After that, to find the
**Total Labor Expense**put an**equal sign (=)**in cell**C9**. - After that, we will type the reference cell number
**C7**>> put an**asterisk**for multiplication (*****) >> type the reference cell number**C8**. - The cell you referred to will be highlighted in your worksheet.
- At the moment, press
**ENTER**. - As a result, you can see the result in cell
**C6**.

- Then, to find the
**Net Income**put an**equal sign (=)**in cell**C10**. - After that, we will type the reference cell number
**C6**>> put a**subtraction sign**(-) >> type the reference cell number**C9**. - The cell you referred to will be highlighted in your worksheet.
- Moreover, press
**ENTER**. - Hence, you can see the result in cell
**C10**.

- Finally, to find the
**Income Per Product**put an**equal sign (=)**in cell**C11**. - After that, we will type the reference cell number
**C10**>> put a**forward slash**for division (**/**) >> type**2**. - The cell you referred to will be highlighted in your worksheet.
- Moreover, press
**ENTER**. - Therefore, you can see the result in cell
**C11**.

**Read More:** **How to Create a Formula in Excel for Multiple Cells (9 Methods)**

**3. Pointing and Clicking to Create a Formula in Excel**

In this method, we will use the** point-and-click** method to **create a formula in Excel**. Instead of typing the cell number in the formula, you can simply select the cell by pointing and clicking.

**Steps:**

- First of all, to find the
**Total Sales**, put an**equal sign (=)**in cell**C6**. - After that, we will select the reference cell number
**C4**by pointing the mouse over cell**C4**.

- Then, we put a
**plus sign (+)**>> select the reference cell number**C5**. - The cell you referred to will be highlighted in your worksheet.

** **

- In addition, press
**ENTER**. - Therefore, you can see the result in cell
**C6**.

- Moreover, to find the
**Total Labor Expense**put an**equal sign (=)**in cell**C9**. - Afterward, we will select the reference cell number
**C8**by pointing the mouse over this cell. - In addition, we will put an
**asterisk**for multiplication (*****). - Then, we will select the reference cell number
**C7**by pointing the mouse over this cell. - In addition, press
**ENTER**. - Therefore, you can see the result in cell
**C9**.

- Moreover, to find the
**Net Income**put an**equal sign (=)**in cell**C10**. - Afterward, we will select the reference cell number
**C6**by pointing the mouse over this cell. - In addition, we will put a
**subtraction sign**(-). - Then, we will select the reference cell number
**C9**by pointing the mouse over this cell. - Along with that, press
**ENTER**. - As a result, you can see the result in cell
**C10**.

- Finally, to find the
**Income Per Product**put an**equal sign (=)**in cell**C11**. - Afterward, we will select the reference cell number
**C10**by pointing the mouse over this cell. - In addition, we will put a
**forward slash**for**division**(**/**) >> type**2**. - Along with that, press
**ENTER**. - Hence, you can see the result in cell
**C11**.

**4. Defining Cell’s Name to Create a Formula in Excel**

In this method, we will define the cell’s name, and using the names we will **create a formula in Excel**.

**Steps:**

- First, to give a name for cell
**C4**, select cell**C4**>> type a name in the Name Box beside the**Formula Bar**. - Here, we type
**Sales_A**.

**Note:**The name can’t have any space. So you have to give an

**or**

*underscore***instead of a space.**

*hyphen*- Then, press
**ENTER**. - Therefore, cell
**C4**will have a defined name.

- Furthermore, we will define a name for cell
**C5**as well.

- Later, to find the
**Total Sales**, we will type an equal (**=**) in cell**C6**. - Then, we will type
**Sales_A**>> put a**Plus sign**(+) >> type**Sales_B**.

- At this point, press
**ENTER**. - As a result, you can see the result in cell
**C6**.

- In a similar way, we define names for cells
**C8**and**C9**. - Here, for
**C8**we define the name as**Hourly_Wage**, and for cell**C9**we define the name as**Total_Labor**. - Next, to find the
**Total Labor Expense**, we will type an equal (**=**) in cell**C9**. - Then, we will type
**Hourly_Wage**>> put an**asterisk**for multiplication (*****) >> type**Total_Labor**. - After that, press
**ENTER**. - As a result, you can see the result in cell
**C9**.

- In addition, we define names for cells
**C6**and**C9**. - Here, for
**C6**we define the name as**Total_Sales**, and for cell**C9**we define the name as**Total_Labor_Expense**. - Next, to find the
**Net Income**, we will type an equal (**=**) in cell**C10**. - Afterward, we will type
**Total_Sales**>> put a**subtraction**sign (-) >> type**Total_Labor_Expense**. - After that, press
**ENTER**. - Therefore, you can see the result in cell
**C10**.

- Moreover, we define the name of cell
**C10**. - Here, for
**C10**we define the name as**Net_Income**. - Furthermore, to find the
**Income Per Product**we will type an equal (**=**) in cell**C11**. - Afterward, we will type
**Net_Income**>> put a**forward slash**for**division**(**/**) >> type**2**. - After that, press
**ENTER**. - Hence, you can see the result in cell
**C11**.

**5. Creating a Formula by Using Functions**

Functions are predetermined formulas that Excel has built. There are thousands of formulas excel has and you can calculate almost any type of calculation by using this formula. Here, we will use the **in-built **functions of Excel to **create a formula**.

**5.1. Using Insert Function Feature**

You can use a formula from the **Function** wizard to **create a formula in Excel**.

**Steps:**

- First of all, we have to select the cell where we want to put the formula.
- Here, we want
**the SUM function**in cell**C6**to find the**Total Sales**. - Therefore, we click on cell
**C6**. - Then, we go to the
**Formulas**tab >> select**Insert Function**.

- At this point, an
**Insert Function**dialog box will appear. - Then, in the
**Or select a category**box, we will select**All**. - Here, make sure to select
**All**, this will bring out all the**built-in**functions of Excel. - Then, in the
**Select a Function**box >> scroll down until you find**the SUM function**. - After that, click on
**the SUM function**>> click**OK**.

- Then, the
**Function Arguments**dialog box will appear. - Afterward, in the
**Number1**box, select the range of cells that you want to sum up. - Here, we selected cells
**C4:C5**. - Then, click
**OK**.

- Therefore, you can see the result in cell
**C6**.

- In a similar way, we use
**the PRODUCT function**for multiplication to find the**Total Labor Expense**. - Therefore, you can see the result in cell
**C9**.

- Since there is no function for
**subtraction**in Excel. You need to use**the SUM function**to do these calculations. - Therefore, we use
**the SUM function**for subtraction to find the**Net Income**. - Here, we simply put a
**minus**sign (-) before the value of cell**C9**. - As a result, you can see the output in cell
**C10**.

- Along with that, we use
**the QUOTIENT function**for the**division**to find the**Income Per Product**. - Hence, you can see the result in cell
**C11**.

** ****Read More:** **How to Create a Custom Formula in Excel (A Step-by-Step Guideline)**

**5.2. Using Formula Bar**

Here, we will use the** Formula Bar** to insert a function so that we can** create a formula in Excel**.

**Steps:**

- In the first place, to find the
**Total Sales**we will use**the SUM function**. - Now, to insert the function, we will type an
**equal sign (=)**in cell**C6**>> type**the SUM function**in the**Formula Bar**and select the cell range (**C4:C5**).

- After that, press
**ENTER**. - Therefore, you can see the result in cell
**C6**.

- In a similar way, to find the
**Total Labor Expense**, we type**the PRODUCT function**in the**Formula Bar**>> select**C7**as the**first argument**and**C8**as the**second argument**. - Then, press
**ENTER**. - Therefore, you can see the result in cell
**C9**.

- Moreover, to find the
**Net Income**, we type**the SUM function**in the**Formula Bar**>> select cell range. - Here, since we want subtraction, we put a
**minus sign**(-) before cell**C9**. - Then, press
**ENTER**. - Therefore, you can see the result in cell
**C10**.

- Finally, to find the
**Income Per Product**, we type**the QUOTIENT function**in the**Formula Bar**>> select**10**as the**first argument**(dividend) and**2**as the**second argument**(divisor). - Then, press
**ENTER**. - Therefore, you can see the result in cell
**C11**.

**Read More:** **How to Create a Formula to Calculate Percentage in Excel**

## How to Create a Formula for Dates in Excel

In the following dataset, you can see the** Product Name**,** Cost Price**, and **Selling Price**. Now, we will find the **Purchase Date** for the product. Here, we will show you how you can **create a formula for dates in Excel**. We will use **the DATE function** for this purpose.

**Steps:**

- First of all, we will type the following formula in cell
**C7**.

`=DATE(2022,1,1)`

- Here,
**2022**is the**Year**,**1**is the**Month**, and**1**is the**Day**.

- After that, press
**ENTER**. - Hence, you can see the result in cell
**C7**.

**Practice Section**

You can download the above Excel file and practice the explained methods.

**Conclusion**

Here, we show you** 5 **easy methods to** create a formula in Excel**. Thank you for reading this article. We hope it was helpful. If you have any queries, please let us know in the comment section. You can visit our website** Exceldemy** for more related articles.