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Difference Between Function and Formula

Function vs Formula

Though, function and formula are general terms that are of great significance in the study of math, chemistry and physics where a student encounters lots and lots of them, this article attempts to find differences between functions and formulas that one encounters when he tries to use Excel as a calculator. There are both formulas such as =A1+A2 and =345*14 as well as predefined formulas such as SUM, INDEX, VLOOKUP etc (there are hundreds of such formulas). But these predefined formulas are referred to as functions. Let us take a closer look.

You can write a formula containing a function though, it is possible to write a formula without a function. Those who use excel spreadsheet often need to master the skill of using both functions as well as formulas to be able to learn financial modelling. It is thus, possible for those who have expertise to build their own functional worksheets. To achieve a particular calculation, one needs to come up with a formula as it is the formula that comes up with a value. So if it is something specific, you need to write a formula for it, though there are more than 300 pre set formulae that are known as functions to help you out in your endeavor. One can write simpler formulas using these functions, but if he has to calculate something complex, he will have to write out his own formula.

In brief:

Difference between Function and Formula

• It has become commonplace to make use of excel spreadsheet as a calculator these days, but it requires mastering formulas and functions to be able to do so.

• There are formulas and also pre defined formulas in Excel to help in complex calculations.

• The pre defined formulas are known as functions

• One has to devise his formula if he is desirous of making specific calculations.


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