Formulas are type of equations which perform different calculations on the given values in worksheet. Creating formulas in Excel is easy once you have learnt the basics. Any Excel formula begins with an equal sign, as, (=).

Example =6+2*5

This formula multiplies 2 with 5 and adds 6 to the multiplication result.

The Excel formulas work upon the same mathematical basics which everyone is well aware of since school days. For example for addition, you just need two numbers and the + operator or you can use the Excel syntax =SUM (number1,number2) which will add numbers in the given range of cells.  

Creating formulas in Excel make use of some basic but essential parts:

Functions:  This is denoted by closed parenthesis like (). For example, the PI () function provides the pi value as 3.142...

References: For calculating equations, Excel uses the data given in cells. For every equation to be calculated, the cell works as variables and references as well. For Example A6 will return the value given in A6 cell.

Constants: The Constants in creating Excel formula are those text values/numbers which are entered directly ina formula.

Operators:  Operators are just like simple mathematical operators’ symbols which define the type of calculation to be performed. For example:addition (+), subtraction (-) or multiplication (*).

While creating formulas in Excel you should understand that the similar formula can be entered speedily in a range of cell. You just need to select the range for calculation and type the formula over there. Next, press CTRL+Enter. When we copy any formulas, the reference gets adjusted accordingly.