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Spreadsheet basics: The difference between formulas and functions

by Jennifer Marsh

Created on: February 21, 2011   Last Updated: February 23, 2011

A spreadsheet application is software that benefits anyone who needs to create dynamic reports. You create dynamic reports using both formulas and functions. To use both of these features accurately, you must know the difference between the two types of spreadsheet features. Each spreadsheet feature offers a way to dynamically add, subtract, multiply and divide. You can also use these features to update data and copy text from one cell to the next.

What are Spreadsheet Formulas?

Spreadsheet formulas are the same as mathematical formulas you learn in academia. Spreadsheet formulas use the numbers you enter in a spreadsheet cell and manipulate that number into a value. Formulas transform values into a value. These formulas can be complex such as trigonometry or calculus applications, or you can use a number for a simple addition or subtraction application. The formulas you create in a spreadsheet provide a way to calculate numbers to provide a running total or statistical information for your readers.

What are Spreadsheet Functions?

Functions are small blocks of code that perform an action for your spreadsheet. These functions can transform any information to desired results. For instance, if you wanted to transform the term “Sold” into the term “Sold x Product,” you would do that using a function. A spreadsheet function requires a parameter, and that parameter returns the value you want. Returned values are displayed in the spreadsheet cell you choose.

Creating spreadsheet functions require more advanced skills. Functions are created in the Visual Basic for Applications (VBA) language. VBA lets you make advanced applications for a spreadsheet. You can create a spreadsheet that interacts with a website, a database or other spreadsheets. Creating spreadsheet functions are beneficial, because you can use them with other spreadsheets without the need to create new code.

How Do You Know What to Use?

Formulas are for basic calculations. Functions do simple editing and mathematical calculations. Spreadsheet applications have some complex calculations set up in functions such as trigonometry or calculation calculations. However, you can make your own functions that are customized for your own spreadsheets. If you need to create your own function, you must learn the VBA programming language. Several books and websites are dedicated to the VBA spreadsheet programming language. VBA is based off of Visual Basic, so it is simple for anyone who knows the Visual Basic programming language. Functions and formulas are a part of creating more advanced spreadsheets for your own benefit or the benefit of your employer.

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