In this module, you will learn how to perform basic calculations using Excel formulas. Formulas are one of the most important features of Excel because they allow users to calculate information quickly, accurately, and consistently.

You will be introduced to commonly used functions such as SUM and simple percentage calculations. These formulas are widely used in business and finance environments to calculate totals, monitor costs, review sales performance, and support budgeting activities.

Excel formulas always begin with the equals sign (=). For example:

=SUM(B2:B6)

This formula adds together all values within cells B2 to B6.

You will also explore how percentages can be calculated using formulas. For example, a business may calculate VAT, discounts, or profit margins using percentage calculations within a spreadsheet.

Worked Example:

A business sells 12 products at £5 each.

Formula:
=12*5

Result:
£60

This demonstrates how Excel can automate calculations and reduce the risk of manual errors.

Common mistakes when using formulas include:
- selecting incorrect cell ranges
- typing text instead of numbers
- forgetting brackets or symbols
- using incorrect formulas

By the end of this module, you will be able to use basic formulas to perform simple calculations confidently.

Activity:

Using your example spreadsheet data, apply a SUM formula to calculate a total. Then calculate a percentage value such as VAT, tax, or discount using a simple formula.

Try creating:
- a total sales calculation
- a 20% VAT calculation
- an average value using the AVERAGE function

This activity reinforces how formulas support practical business calculations and improve efficiency when working with financial information.

Reflection Question:

Why are spreadsheet formulas more reliable than manual calculations in business environments?