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  Tutorial: MS Excel Basics Formulas in Excel Tutorial

Formulas are entries that have an equation that calculates the value to display. We DO NOT type in the numbers we are looking for; we type in the equation. This equation will be updated upon the change or entry of any data that is referenced in the equati

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Basics Formulas in Excel

Formulas are entries that have an equation that calculates the value to display.

We DO NOT type in the numbers we are looking for; we type in the equation. This equation will be updated upon the change or entry of any data that is referenced in the equation.

This was NOT typed into the keyboard.

The formula that was typed into the spreadsheet was: =PMT(C4/12,C5,-C3)
C4 (annual interest rate) was divided by 12 because there are 12 months in a year.

Dividing by 12 will give us the interest rate for the payment period - in this case a payment period of one month.

It is also important to type in the reference to the constants instead of the constants. Had I entered =PMT(.096,60,-12000) my formula would only work for that particular set of data. I could change the months above and the payment would not change. Remember to enter the cell where the data is stored and NOT the data itself.

Formulas are mathematical equations. There is a list of the functions available within Excel under the menu INSERT down to Function.


 

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