If you’ve ever opened up Excel and felt overwhelmed by the differences between formulas vs. functions, you’re not alone. Many Excel users, whether new or experienced, think that formulas are easier while functions are too complicated to mess with. But here’s the real deal: they’re almost the same thing.

I’ve been using Excel for years and have heard countless times, “I’ll use a formula, but I don’t mess with functions. They’re scary!” Today, I’m going to show you just how similar a formula vs. a function really are. We’ll cover what makes them different and how embracing functions could save you both time and headaches.

What are Formulas and Functions?

Let’s start simply. In Excel, a formula is any type of equation typed manually by the user. That can mean as simple as adding up a few values yourself. A function, on the other hand, is a built-in command that automates that process. In other words, formulas require a little more manual work, while functions are automated to do the heavy lifting for you.

Example of a Formula

Let’s say you have a column of data with some prices, and you want to add them up using a formula. You would go to the formula bar in Excel and type:

=A1 + A2 + A3

Pretty simple, right? You’re telling Excel exactly what to add up.

Example of a Function

Now, if you want to achieve the same result but with a function, you’d use SUM, one of Excel’s most popular functions. It looks like this:

=SUM(A1:A3)

See the difference? With a single function, Excel automatically understands that you want to add everything from A1 to A3.

RELATED TOPIC: How to use the SUMIF and SUMIFS Functions in Excel

Formula vs Function: A Deeper Look

On the surface, you might wonder, “Why bother with functions if I can just use formulas?” Let’s break down some key reasons why functions are often a better option:

Manual vs. Automated

When you create a formula, like adding numbers one by one manually, you input each value individually. The more values you’re working with, the more tedious this becomes. For example, if you’re adding 100 numbers, typing each cell reference like A1 + A2 + A3... will get exhausting (not to mention higher chances for mistakes).

Here’s where functions shine. Functions like SUM or AVERAGE automate all the work for you. Instead of typing each value, Excel does the heavy lifting by grabbing the range of cells at once.

Using functions drastically reduces human error. If you slip up while typing a formula (maybe adding 5 numbers instead of 6), you risk compromising your results. Functions take away that risk by being accurate every time, as long as your data range is right.

Averages in Excel – Formula vs Function

Let’s try an average. Say you have a few different prices in a column, and you need to average them. Here’s how you’d do it manually with a formula:

  1. First, add them up: =A1 + A2 + A3 + A4 + A5 + A6
  2. Then divide by the number of values (in this case, 6): =(A1 + A2 + A3 + A4 + A5 + A6) / 6

With a function, there’s a shortcut. Simply use the AVERAGE function:

=AVERAGE(A1:A6)

Done! Two critical steps boiled down to one with no math missteps to worry about.

RELATED TOPIC: How to Use Text to Columns in Microsoft Excel

How Functions Improve Quality

One of the key benefits of using functions is minimizing human error. When you manually type a formula, it’s too easy to mess up. You might skip a value or forget to close a parenthesis—and sometimes, you won’t notice until it’s too late.

Functions have built-in error-reducing features. Excel often guesses which cells you want to include, especially with functions like SUM or AVERAGE. When you press “Enter,” you can see exactly which range is being calculated using the suggested formula in the preview. Even if Excel gets it wrong, it’s much quicker to correct an automated suggestion than re-checking all your manual inputs.

Additionally, if you’re working with large datasets, inputting everything manually isn’t just time-consuming—it can be outright disastrous for accuracy. Imagine missing just one value while summing revenue data for your business. Now you’re looking at the wrong total, and Excel isn’t here to correct your mistakes unless you use functions.

Why You Shouldn’t Fear Excel Functions

New Excel users can feel intimidated by the function argument box that pops up when inserting a function. But trust me, after using them, you’ll realize it’s no more than Excel’s way of giving you a fill-in-the-blank calculator.

Here’s what you can try right now:

  1. Open Excel.
  2. Make a copy of data that you won’t mess up (because let’s keep your original dataset safe, okay?).
  3. Start using functions. Try SUM, AVERAGE, or even COUNT just to see how they work.

If you’re not sure what a function does, hover over it, and Excel gives you a helpful tip. If you’re still not sure, drop me a comment, and I can create more tutorials to walk you through any tricky functions.

Formula vs Function in Excel Recap

  • Formula: Created manually by the user. You type everything yourself.
  • Function: Pre-set commands automate the process.

By now, I hope you see that functions aren’t as scary as they might seem at first. They’re here to help streamline your workflow and minimize mistakes. Formulas are fine for quick calculations, but functions are your go-to when you’re dealing with complex datasets or trying to boost productivity.

RELATED TOPIC: How to Use the Proper Function in Excel

What’s Next?

If you’ve been sticking to formulas only, give functions a try. Start with something basic like SUM, AVERAGE, or MIN/MAX. Once you’re comfortable, branch out into more advanced functions—the payoff is unmistakable.

If you hit a roadblock, don’t hesitate to reach out. Drop your questions in the comments, and let me know what you’d like to see in the next tutorial.

Until next time, happy functioning! See you in the next Excel adventure.

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