Excel Functions vs Formulas: Here's the difference

One of Excel's primary features is its ability to perform calculations using functions and formulas. Although these terms are often used interchangeably, they have different meanings. Let's dive into the differences.

What is an Excel formula?

In Excel, a formula is an expression used to perform calculations or manipulate data within a worksheet. Formulas can perform basic arithmetic operations, such as addition, subtraction, multiplication, and division, as well as more complex operations. The primary function of a formula is to process data inputs, such as cell references, numbers, or text, and return the result.

A formula in Excel always begins with an equal sign (=), which signals to Excel that the following expression is for calculation. For example, if you want to sum the values ​​in two cells, you can enter a formula =B2+C2where B2 and C2 They are cell references.

What is the function of Excel?

An Excel function is a predefined built-in formula designed to perform specific tasks efficiently. Functions simplify complex operations by allowing users to enter values, known as arguments, and obtain results without having to write detailed formulas themselves.

Excel offers an extensive library of functions that meet different needs, including mathematical and statistical calculations, word processing, logical tests, date and time operations, and financial analysis. Functions work within formulas, so a formula begins with an equal sign (=), followed by the function name and parentheses containing the arguments.

For example, the SUM function is a popular choice for quickly adding numbers. Instead of writing =A1+A2+A3+A4+A5You can simply use =SUM(A1:A5). Note that both of these formulas, but only the latter, use a function, in this case, the SUM function. ​​​​​​​​

Formulas vs functions

Although both formulas and functions may look similar, they serve slightly different purposes and can often be used together to achieve a wide range of calculations.

Formulas provide maximum flexibility because you can customize them to suit your specific needs. For example, a formula like =A1+B1*2 It allows you to specify precisely how the values ​​in those cells interact, giving you complete control over the calculation. This flexibility is especially useful when you need to combine multiple operations within a single formula.

Functions, on the other hand, are built-in tools designed to simplify and speed up common tasks. Instead of creating complex logic from scratch, you can use a function to perform specific calculations with minimal effort. For example, instead of manually calculating the average using a formula like =(A1+A2+A3)/3You can use the AVERAGE function (=Average(A1:A3)) to get the job done more efficiently.

The main difference between the two is that a formula is a user-created custom expression, while a function is a pre-written calculation built into Excel that you can use in formulas. Functions exist to reduce the risk of errors and help save time in Excel, especially when performing advanced calculations.

Of course, not every calculation has a predefined function in Excel. For example, Excel functions can convert text to uppercase and lowercase, but there is no Excel function to convert text to sentence case. In such cases, you will need to create your own formula, combining Excel's built-in functions to get the desired result.

Understanding the difference between formulas and functions may seem abstract at first, but it's a critical concept to understand before delving into Excel and devising solutions to your unique spreadsheet challenges.