Learn How to Create Formulas in Google Sheets

Understanding Google Sheets Formulas and Their Purpose

Google Sheets is a cloud-based spreadsheet tool that lets you organize, calculate, and analyze data online. One of the most useful features of Google Sheets is the ability to create formulas—instructions that tell the spreadsheet to perform calculations or manipulate data automatically.

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A formula is essentially a set of instructions written in a specific language that Google Sheets understands. Instead of manually calculating totals, averages, or other values, you write a formula once and it does the work for you. This saves time, reduces errors, and makes your spreadsheets more powerful and dynamic.

Formulas in Google Sheets start with an equals sign (=). Without this symbol, Google Sheets treats what you type as regular text rather than a calculation. For example, if you want to add two numbers together, you would type =5+3, and Google Sheets would display 8 as the result.

The most common types of formulas include arithmetic operations (adding, subtracting, multiplying, dividing), functions (pre-built calculations like SUM, AVERAGE, COUNT), and logical operations (comparing values to create true or false results). Understanding how formulas work opens up countless possibilities for organizing and analyzing information in your spreadsheets.

Whether you're tracking personal finances, managing a project budget, analyzing sales data, or organizing student grades, formulas can handle the calculations automatically. This means you can update your source data, and the formula results update instantly without any additional work from you.

Practical Takeaway: Always remember that formulas begin with an equals sign. This small symbol tells Google Sheets that you're giving it an instruction, not just typing regular information.

Basic Arithmetic Formulas and Simple Calculations

The simplest formulas perform basic math operations: addition, subtraction, multiplication, and division. These foundational formulas are useful for everyday calculations and serve as building blocks for more complex formulas you'll learn later.

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To add two numbers, use the plus sign. For example, =10+15 produces 25. To subtract, use the minus sign: =50-20 produces 30. For multiplication, use the asterisk (*): =6*7 produces 42. For division, use the forward slash (/): =100/4 produces 25. You can also combine multiple operations in one formula: =10+5*2 produces 20 (following standard mathematical order of operations, where multiplication happens before addition).

These arithmetic formulas become much more useful when you reference cells instead of typing numbers directly. A cell is a single box in your spreadsheet, identified by a letter (column) and number (row). For example, cell A1 is in column A, row 1. If you have the number 50 in cell A1 and the number 30 in cell B1, you can create a formula =A1+B1 that produces 80. If you later change the number in A1 to 60, the formula automatically updates to show 90.

You can also include multiple cells in a single formula. For instance, =A1+A2+A3+A4 adds up four cells in column A. This approach makes your spreadsheet dynamic—when any of the referenced cells change, your formula results update instantly.

Cell references can also work across different sheets within the same spreadsheet. If you have data in Sheet1 and want to reference it in Sheet2, you would type =Sheet1!A1+Sheet1!B1, using an exclamation point to separate the sheet name from the cell reference.

Practical Takeaway: Reference cells instead of typing numbers directly. This way, when your data changes, your calculations update automatically without rewriting the formula.

Using Built-in Functions: SUM, AVERAGE, COUNT, and Beyond

Built-in functions are pre-programmed formulas that Google Sheets provides to handle common calculations. Using functions is more efficient than typing out long addition formulas, and they can handle much larger sets of data.

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The SUM function adds up a range of cells. A range is a group of cells, written as the starting cell and ending cell separated by a colon. For example, =SUM(A1:A10) adds all the numbers from cell A1 through A10. If you had 100 rows of sales data in column A, you could write =SUM(A1:A100) instead of typing A1+A2+A3... ninety-eight more times. This is far more practical and less prone to mistakes.

The AVERAGE function calculates the mean of a range. =AVERAGE(A1:A10) adds all the values and divides by how many cells contain numbers. This is useful for finding average test scores, average monthly expenses, or typical values in a dataset.

The COUNT function tells you how many cells in a range contain numbers (not text or empty cells). =COUNT(A1:A10) might return 8 if only 8 of the 10 cells contain numeric values. The COUNTA function counts all non-empty cells, including those with text.

The MIN function finds the smallest value in a range, and MAX finds the largest. For example, if you're tracking daily temperatures in cells A1 through A31, =MIN(A1:A31) shows the coldest day and =MAX(A1:A31) shows the warmest day. Other useful functions include MEDIAN (the middle value when sorted), ROUND (rounding numbers to a specific number of decimal places), and ABS (absolute value, removing the negative sign).

You can also nest functions, meaning one function goes inside another. For example, =ROUND(AVERAGE(A1:A10),2) calculates the average of A1 through A10, then rounds the result to 2 decimal places. This combines two operations into a single formula.

Practical Takeaway: Replace long addition formulas with SUM. Replace single calculations with the appropriate function (AVERAGE for means, COUNT for quantities, MIN/MAX for extremes). Functions make formulas shorter, clearer, and easier to maintain.

Creating Conditional Formulas with IF Statements

Conditional formulas evaluate whether something is true or false, then perform different actions based on that result. The IF function is the foundation of conditional logic in Google Sheets. An IF statement has three parts: the condition to check, what to do if it's true, and what to do if it's false.

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The basic structure is: =IF(condition, value_if_true, value_if_false). For example, =IF(A1>10, "High", "Low") checks if the value in A1 is greater than 10. If it is, the formula displays "High". If it's not, the formula displays "Low". You can use comparison operators like > (greater than), < (less than), = (equal to), >= (greater than or equal to), <= (less than or equal to), and <> (not equal to).

IF statements become powerful when applied to columns of data. Imagine you have test scores in column A and want to show "Pass" for scores of 70 or above and "Fail" for anything lower. You would write =IF(A1>=70, "Pass", "Fail") in cell B1, then copy this formula down column B for all your students. Each row automatically checks its corresponding score.

You can combine multiple conditions using AND and OR functions. =IF(AND(A1>60, B1>60), "Both Pass", "One or Both Fail") checks if both values are above 60. =IF(OR(A1>90, B1>90), "At Least One Excellent", "Both Below 90") returns true if either value exceeds 90.

You can also nest IF statements, meaning one IF goes inside another. =IF(A1>90, "A", IF(A1>80, "B", IF(A1>70, "C", "Below C"))) assigns letter grades based on numeric scores. However, nested IFs can become difficult to read. For many conditions, the IFS function (new in Google Sheets) is cleaner: =IFS(A1>90, "A", A1>80, "B", A1>70, "C", true, "Below C").