Your First Formulas & the Order of Operations¶

A formula is any cell entry that starts with =. That equals sign tells Excel "calculate this."

A spreadsheet with formulas calculating totals

Anatomy of a Formula¶

excel

5 lines

1=B2 * C2
2│  │   │
3│  │   └─ another cell reference
4│  └───── operator (multiply)
5└──────── the = sign that starts every formula

excel

2 lines

1=125 * 4        ← ❌ breaks when the data changes
2=B2 * C2        ← ✅ updates automatically

The whole point of a spreadsheet: change an input, and every formula that references it recalculates instantly.

Excel follows math precedence, not left-to-right:

1. ( )   Parentheses
2. ^     Exponents
3. * /   Multiply & Divide
4. + -   Add & Subtract

excel

2 lines

1=10 + 2 * 3      → 16   (multiply first)
2=(10 + 2) * 3    → 36   (parentheses first)

Caution

When in doubt, add parentheses. =A1+B1/2 halves only B1; =(A1+B1)/2 averages both. Explicit parentheses prevent silent mistakes.

A formula is any cell entry that starts with =. That equals sign tells Excel "calculate this."

A spreadsheet with formulas calculating totals

excel

5 lines

1=B2 * C2
2│  │   │
3│  │   └─ another cell reference
4│  └───── operator (multiply)
5└──────── the = sign that starts every formula

excel

2 lines

1=125 * 4        ← ❌ breaks when the data changes
2=B2 * C2        ← ✅ updates automatically

The whole point of a spreadsheet: change an input, and every formula that references it recalculates instantly.

Excel follows math precedence, not left-to-right:

1. ( )   Parentheses
2. ^     Exponents
3. * /   Multiply & Divide
4. + -   Add & Subtract

excel

2 lines

1=10 + 2 * 3      → 16   (multiply first)
2=(10 + 2) * 3    → 36   (parentheses first)

Caution

When in doubt, add parentheses. =A1+B1/2 halves only B1; =(A1+B1)/2 averages both. Explicit parentheses prevent silent mistakes.