Microsoft Excel Basics: What Are Functions?

Microsoft Excel allows you to write any formula that you require in a cell using basic mathematical operators such as Brackets, Division, Multiplication, Subtraction and Addition however it is easy for these formulas to become complex very quickly.

Microsoft has provided a tool called functions to help decrease the complexity of your formulas. In essence, Functions are simply pre-written formulas.

There is a range of functions available in Microsoft Excel and they are distinguished by categories. Some of the categories include Financial Functions, Date and Time functions, Text functions, Statistical functions, Lookup and Reference functions, Database functions, Logical and Information functions.

Each of the functions return a value based on parameters provided by the function. The key advantage of using a function is to decrease the complexity of your cells. The example below demonstrates the same formula written two different ways.

Formula Version: = (C1 + C2 + C3 + C5) / 4

Function Version: = Average(C1:C5)

Functions can also be nested within formulas or with other functions as shown in the formula below.

= ((Average(F5:F100) * Sum(C2:C34))* 60) + Sum(K45:K70)

Categories of Functions

Each category of function in an Excel worksheet plays an important role and the table below describes what each category of function can do.

Financial Category Functions - Allows you to undertake financial calculations such as working out a loan repayment.

Date & Time Category Functions - Allows you to undertake chronological calculations such as calculating the numbers of days to the date a bill is due for payment.

Math & Trig Category Functions - Allow you to undertake mathematical and trigonometric calculations such as addition, subtraction, tangents and cosine.

Statistical Category Functions - Allows you to undertake statistical calculations such as finding out the average of a range

Lookup & Reference Category Functions - Allows you to create a reference to a cell using a column and row

Database Category Functions - Allows you to access information in an Excel Database

Text Category Functions - Allows you to perform actions on text such as counting the number of characters in a text selection.

Logical Category Functions - Allows you to undertake logical operations such as the If function to test if a certain condition is true or false.

Information Category Functions - Allows you to find out information regarding the state of your Excel worksheet.

If you would like to learn Microsoft Excel in detail simply goto our website Microsoft Excel Training. We also have cheatsheets to help you learn your shortcuts at Excel Shortcuts.