What is a formula in Excel, and how is it structured?

A formula in Excel is fundamentally defined as an equation that performs calculations using cell values. This allows users to manipulate and analyze data effectively by utilizing arithmetic operations, functions, and references to other cells. Formulas can include a range of mathematical operations, such as addition, subtraction, multiplication, and division, making them versatile tools for data analysis.

The structure of an Excel formula typically begins with an equals sign followed by the equation or function. For example, a simple formula like =A1 + A2 adds the values in cells A1 and A2. More complex formulas can integrate functions such as =SUM(A1:A10), which calculates the total of a range of cells.

This core functionality differentiates formulas from tasks like changing cell background colors, importing external data, or protecting cells, which are not inherently related to performing calculations or analyzing data.