Learn How Excel Calculates Formulas

Order of Calculations in Excel

Excel Calculation Order

Have you ever written a Formula in Excel only to receive a result that was different from the one you expected? Most Excel users have shared that experience from time to time! Excel is smart and fast. However, it can not read your mind.

In this lesson, I show you how Excel evaluates and calculates a formula. Once you understand “Excel’s perspective” of the formula, you will know how to correctly write the formula so that Excel will produce the result that you intended. In other words, to see the formula from “your perspective!

Order of Precedence

Excel performs calculations in formulas moving from left to right in this order:

  1. Performs Multiplication (*) and Division (/)
  2. Goes back and performs Addition (+) and Subtraction (-)

This is the “key” to consistently getting Excel to produce the results that you intended. No, you can’t get Excel to make you an “instant millionaire” or do anything illegal. However, understanding how to write formulas correctly – so that you control the order of calculation in Excel – is the “secret sauce!”

Control the Order of Calculation in Excel This formula: =5+15*2 results in 35. If you were expecting the result to be 40, then write the formula as (5+15)*2. In other words, take the “result” of 5+15 or 20 and multiply this by 2 to give me 40.By using parentheses (5+15) you take control over the order of precedence that Excel uses. Help Excel to see the formula from your perspective!

Free Chart of Excel Formula Operators

I have published  a chart – “Using Operators in Excel Formulas” – To get your free copy as a PDF, click on the link below:

CR – Using Operators in Excel Formulas

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Follow this link to my Index of Free Excel Video Tutorials

Watch This Video Tutorial In High Definition

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4 reasons to use Excel's Formula Auditing tools

In this Excel training video I will show you how to use the Formula Auditing Toolbar to:

  1. Learn about the relationships among your formulas and cells by tracing precedents & dependents.
  2. Finding the source of your formula errors – and correcting them!
  3. Evaluate your formulas step-by-step to better understand how they are built.
  4. Setting up a small window to “watch” your key formulas change as you enter and edit data in cells.

Here are the steps to follow in this video training lesson:

  1. Select Tools,  Formula Auditing, Show Formula Auditing Toolbar.
  2. Select a cell containing a formula and experiment with the icons to Trace Precedents and Trace Dependents. Click the icon several times to trace back as far as you can go.
  3. Select a cell and Evaluate its Formula. Step In and Step Out to learn how the formula is built.
  4. Paste a list of all of the Names in your workbook. Select Insert, Name, Paste, Paste List.
  5. Select a cell with a formula and click the Show Watch Window icon to see how the formula results change as you enter and edit data in cells that feed into that formula.

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