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Absolute Reference

Absolute reference is used when you do not want to change the address of the cell while copying
the formula to the other cell. To use absolute reference in a formula, you need to add Dollar ($)
sign before the column and row number. For example, =$A$1+$A$2
Let us calculate the incentive amount at the rate of 10% on monthly sales.

• Type 10% in cell D1.
• Now, click on cell D4.

• Type =B4*$D$1 and press the Enter key.
• Cell D4 displays the value 100.
• Now, copy the formula by dragging the mouse
pointer from cell D5 to D9.

• Observe the formula in the cells from D4 to D9.
The first cell addresses B4, B5, .., B9 have no
rupee sign, so these show relative reference and
gets changed in every cell. However, the second
cell address remains the same in all the cells, i.e.,

$D$1. This shows the absolute reference.
Mixed Reference
It is a combination of relative and absolute reference. In this type of reference, either the row or
column must remain fixed. $A1 + A$2 is an example of mixed reference. Let us use mixed

reference to calculate the Actual Expense.
• Type 50 in cell D2. Click on cell E4.

• Type '-$C4-D$2. Press the Enter key.
• You can further calculate the actual expenses
for the other cells by dragging the mouse
pointer to the desired range when it changes to
the plus (+) symbol.

FUNCTIONS

Functions are the pre-defined formulas in Excel to perform both simple and complex calculations.
Functions save time and eliminate the chance of writing wrong formulas. They accept Arguments
and return Values. Arguments are the input values to functions. They can be numbers, text, etc.
and are enclosed within parentheses.

Functions begin with the equals to (=) sign followed by the function name and then the list of
arguments separated by commas within the parentheses.
For example, =Function name(argument1, argument2, ..)

Rules to Use a Function
You must follow the given rules to use the functions in Excel:

• All Excel functions must begin with equals to ‘=’ sign.

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