basic calcualation in excel

How to use basic calculation in excel

We all want to learn advanced excel without knowing Basic excel concepts. We direct move to learn advanced option i.e. VLOOKUP, Pivot Table, Pivot Chart and advanced formulae.
This blog will help us to learn a basic calculation concept of excel. In this blog, we will learn how to use relative and arithmetic operators with BODMAS Rule.
To use any operator in excel, we should have a little bit knowledge about cell reference or address. The given below picture will help to know what is cell reference in excel.


Basic Calculation with relative operators in excel

The relative operators are basic comparison operators which we are used to solving the basic logical problem with two value.
Relative operators are used to comparing two value and return the answer either TRUE or FALSE. If the condition is true then the formula returns TRUE value otherwise FALSE value.
There are six types of relational operators which are shown below.

arithmetic operator in excel

Basic Calculation with arithmetic Operators in Excel

We can perform two types of calculation in excel, first is static calculation and second is a dynamic calculation.
The static calculation is, when we use only operator and operands i.e. =2+3 and =5*4 where 5 is operands and * is an operator. These are an example of static calculations.

The dynamic calculation is when we use operands, cell reference and operator i.e. = (A1+B1)/2, =A1B1 where A1 is a cell reference, 2 is operand and / is an operator. These are an example of dynamic calculations.
The arithmetic operators are called operands which are used to evaluate or calculate numeric calculation. The standard arithmetic operators are an addition (+), subtraction (-), multiplication (*), and division (/).

arithmetic operation in excel

Basic Calculation with BODMAS Rule in Excel

BODMAS Rule is a very basic rule to solve the mathematical equation step by step. Every Complex equation is solved by BODMAS rule. The BODMAS rule is shown in the below picture.

bodmas rule in excel

The following example will help you to understand how to use BODMAS Rule in Excel.

In this example, we will calculate profit and profit % of an item. while calculating profit and profit %, we will have to use BODMAS rule. firstly we will calculate profit.

1 – At first, you create the following table and select F5 cell.

2. Type the formula to evaluate: =F4*(F2-F3)

3. Press Enter on your keyboard. The formula will evaluate, and the profit will display in the cell.

Note: If we do not use brackets in the above example then the formula returns the wrong answer.

Now we will calculate the profit % of an item.

1 – select F6 cell in the below table.

2. Type the formula to evaluate: =F5/(F4*F3)*100

3. Press Enter on your keyboard. The formula will evaluate and the profit % will display in the cell.

Note: In profit %, we will use the BODMAS rule. By using BODMAS rule we separate the division operation and multiplication operation. to separate both operations, we use brackets.

Now we will look at another example of the BODMAS Rule. in the example, we will calculate the average sale of a year of 4 quarter. to evaluate average sale, we will divide the total sale of the year by a number of a total quarter.

At first, you create a below table and select I7 cell and put the formula: =(I3+I4+I5+I6)/4 to evaluate the average sale.

Now we have to know how to use the basic operation in excel.

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