Formulas in an Excel worksheet perform calculations, such as adding, subtracting, averaging, or multiplying numbers. They’re also dynamic—for example, if you reference a cell address in a formula, the formula changes if the data in the cell changes.
At times, formulas can be complex and time-consuming to build. To simplify creating formulas, Excel also has a solid collection of different functions to assist you with your calculations. For example, you could use the AVERAGE function to average a series of numbers.