Excel Basics: Understanding absolute cell references

Cell references in Excel can significantly ease and enhance your work. You are probably familiar with relative cell references. But what about absolute cell references? They are a crucial component when it comes to making precise calculations in your Excel sheets without changing the references when you copy your formulas. Let's explore the differences between relative and absolute cell references together.

Main Insights

• Absolute cell references remain fixed and do not change when copying formulas.
• Absolute cell references are defined by the dollar sign ($).
• You can customize the fixation for column, row, or both.

Step-by-Step Guide

1. Preparing the Excel Sheet

Start by creating a new, empty Excel sheet. In the first row, you can enter various values. For example, let's assume you have a capital of €500 that you want to use for different purchases.

2. Entering the Expenses

Enter the amounts you want to spend on purchases in the respective cells. For our example, let's say you spend €50 at Rewe, €80 at Marktkauf, and €130 at Saturn.

3. Calculating the Remaining Capital

Now, we want to calculate the remaining capital after each purchase. In a new cell, you can enter the formula to calculate the capital remaining after the Rewe purchase. The formula would be =B1-B3, where B1 is your initial capital and B3 is the amount you spent at Rewe.

4. Copying the Formula and Observing the Relative References

Now drag the cell with the calculated formula down. You will notice that the values change and the references are not correct. This is where the difference between relative and absolute cell references comes into play.

5. Introduction of the Absolute Cell Reference

To ensure that the reference to your capital in B1 always remains the same, you can set this cell as an absolute cell reference. This is done by placing dollar signs before the column and row designations. It's called $B$1, which fixes the cell.

6. Adjusting the Formula with Absolute Reference

Now change your formula to =$B$1-B3. This ensures that when you copy the formula down, it always refers to the value in B1, providing you with the correct results.

7. Descending Calculations with Row Reference

If you want to structure the calculations so that the amount from the previous row is always subtracted, you can do that as well. Instead, in C3, you enter the formula =C2-$B$1. This way, the calculation points to the cell directly above the current row and subtracts the amount in B1.

8. Further Calculations and Using Dollar Signs

If you continue performing calculations in this manner, you can use dollar signs accordingly to fix either the row or the column or both. This allows you maximum flexibility in your calculations.

9. Copying Formulas to the Right

When you copy the formulas to the right, column B ($B$) stays fixed. All other references remain relative, which gives you a significant advantage when dealing with larger datasets or further calculations.

10. Conclusion on the Use of Cell References

In conclusion, it is essential to understand the differences between relative and absolute cell references in order to fully leverage the potential of Excel. Whether you are working with financial data, sales figures, or other statistics - using these cell references correctly can significantly simplify your analysis and reporting.

Summary

You have now learned the basics of absolute cell references in Excel. This skill allows you to perform more efficient and error-free calculations while organizing and analyzing your data.