Formulas are instructions that perform calculations on the worksheet. Formulas can be very simple or extremely complex. A formula begins with an equals sign (=) followed by one or more values and functions to calculate. The values can be entered directly into the formula, but it is more effective to enter the values into cells on the worksheet and make references to those cells in the formula.
A formula can consist of five elements:
Elements of a Formula
- Numerical values or text-strings (such as 1.2, or HeatLosses.
- Cell references (including named cells and ranges).
- Operators.
- Worksheet functions (e.g. SUM or AVERAGE) and their arguments.
- Parentheses to control the sequence in which expressions within a formula are evaluated.




