are custom equations you create yourself to perform calculations, such as =A1+B1 .
are predefined, "built-in" formulas already available in Excel, such as =SUM(A1:A10) . Core Principles Microsoft Excel Functions and Formulas
Microsoft Excel is built on the power of and functions , which allow users to perform everything from simple math to complex data analysis. While often used interchangeably, they represent two different ways to manipulate data: are custom equations you create yourself to perform
Basic formulas use standard mathematical operators: + (addition), - (subtraction), * (multiplication), and / (division). Essential Functions for Every User Overview of formulas
Instead of typing numbers directly (e.g., =10+5 ), it is best practice to use cell references (e.g., =A1+B1 ). This ensures the result updates automatically if the values in those cells change. Essential Functions for Every User Overview of formulas in Excel - Microsoft Support
Every formula and function must begin with an equal sign. This tells Excel that the cell contains a calculation rather than just plain text.