Excel Guide

Basic Excel Formulas Every Beginner Should Know

These basic Excel formulas are the ones beginners use first: add, subtract, multiply and divide with cell references, not typed numbers. Every formula starts with =, for example =A1+A2, and when the cells change, the answer updates itself. Work through the examples below, then try them as real Excel exercises — write the formula and get instant feedback, no sign-up needed.

The four basic operators

Excel formulas always start with an equals sign (=). After that, you can combine numbers, cell references, and operators just like a calculator:

=A1+A2 // addition =A1-A2 // subtraction =A1*A2 // multiplication =A1/A2 // division

The difference between Excel and a calculator is what's on the left of each operator: instead of typing =12+8, you reference the cells that hold those numbers. That one habit is the whole point of a spreadsheet.

Why cell references matter

If A1 holds a price and A2 holds a quantity, =A1*A2 gives you the total. Change the price in A1, and the total updates automatically — no retyping, no re-checking your math. A formula that hardcodes the numbers instead, like =12*8, breaks that link and has to be manually fixed every time the inputs change.

Rule of thumb: if a number in your formula could ever change, put it in a cell and reference that cell — don't type the number directly into the formula.

Order of operations

Excel follows the same order of operations as basic math: multiplication and division happen before addition and subtraction, left to right. Use parentheses to control the order explicitly:

=A1+A2*A3 // A2*A3 happens first =(A1+A2)*A3 // A1+A2 happens first

A worked example

Say A1 holds your monthly income (5000) and A2 holds your monthly expenses (3200). A formula in A3 that returns what's left over is:

=A1-A2

That's it — no need to manually subtract and retype the answer. If your income or expenses change next month, A3 updates itself.

Try it yourself

PractiseSkills has 10 free arithmetic exercises with a real interactive spreadsheet — type a formula, get instant feedback.

Start practicing basic formulas →