What Are Excel Functions?
Excel functions are pre-built formulas that perform specific calculations or tasks in Microsoft Excel. These functions can save time and effort by automating complex calculations and data analysis processes. Common functions include mathematical operations like addition, subtraction, multiplication, and division, as well as statistical analysis functions such as average, median, and standard deviation.
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Key Takeaways
- Excel functions are in-built formulas helpful in deriving desired results.
- Excel functions simplify data analysis while ensuring accuracy and efficiency in professional contexts.
- Using Excel functions, we can perform simple mathematical procedures like addition, subtraction, multiplication, division as well as complex functions.
- Professionals across various industries frequently utilize these functions to simplify complex calculations, facilitate decision-making processes, and enhance overall efficiency in data analysis.
- The functions in Excel save time and effort by automating complex calculations and data analysis processes.
List Of Excel Functions
#1 – Financial Functions
Financial Functions Excel is a powerful and invaluable tool for professionals in the finance industry. With its wide range of functions, it allows users to perform complex financial calculations with ease and accuracy.
Functions | Description | Syntax |
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IPMT | The IPMT function in Excel is a powerful tool utilized by professionals in the financial sector to calculate the interest portion of a loan payment. | =IPMT(rate,per,nper,pv,[fv],[type]) rate = The fixed interest rate specified in the lending agreement for the loan. per = Please ensure that the period for which you wish to calculate the interest falls within the range of 1 to nper. nper = The frequency of payment periods throughout the borrowing duration. pv = Present value (PV) refers to the current value of a series of payments. fv = Future value (FV) represents the loan balance at the maturity date. type = The timing of payment due date. “0” indicates payment at the end of the period. “1” indicates payment at the beginning of the period. |
PPMT | The PPMT Excel function is a highly useful tool for financial analysis and decision-making. | =PPMT(rate,per,nper,pv,[fv],[type])rate = The interest rate per period should be specified accurately. per = It is crucial to indicate the period, which must fall within the range of 1 to nper. nper = The total number of payment periods in an annuity needs to be determined. pv = The present value represents the current worth of a series of future payments. fv = The future value denotes the desired cash balance to be achieved after the final payment. If the future value (fv) is not provided, it is assumed to be 0 (zero), indicating that the future value of a loan is 0. type = The number 0 or 1 is used to indicate the timing of payments. – 0 or omitted: Payments are due at the end of the period. – 1: Payments are due at the beginning of the period. |
Rate | Rate Excel functions are a crucial aspect of utilizing the software effectively, as they allow users to assess the capabilities and efficiency of various built-in functions. | =RATE(nper,pmt,pv,[fv],[type],[guess]) nper = This parameter represents the total number of payment periods in an annuity. pmt = It remains constant throughout the life of the annuity. Typically, the payment includes both principal and interest, excluding any additional fees or taxes. pv= This parameter represents the present value, which is the total amount that a series of future payments is worth at present. fv = This parameter denotes the future value or the desired cash balance to be achieved after the final payment is made. type = This parameter is optional and can take the values 0 or 1, indicating the due date of the payments. When set to 0 or omitted, the payments are due at the end of the period. On the other hand, when set to 1, the payments are due at the beginning of the period. guess = This parameter is optional and allows you to provide your estimated rate. |
PMT | PMT Excel functions are an essential tool for financial analysis and planning used by professionals in various industries. | =PMT(rate,nper,pv,[fv],[type])rate = This is the interest rate that applies to the loan.nper = This represents the total number of payments that need to be made for the loan.pv = This is the present value, which refers to the current worth of a series of future payments. It is also commonly known as the principal amount.fv = This is an optional parameter that indicates the desired cash balance to be achieved after the final payment. If not specified, it is assumed to be 0 (zero), meaning that the future value of the loan is 0.type = This is an optional parameter that can take the values of either 0 or 1. It determines when the payments are due. – 0 or omitted: Payments are due at the end of each period. – 1: Payments are due at the beginning of each period. |
NPER | NPER Excel functions refer to a set of powerful financial formulas that allow users to calculate the number of periods required to reach a desired investment goal. | =NPER(rate,pmt,pv,[fv],[type])rate = This is the interest rate that applies to the loan.pmt = This represents the total number of payments that need to be made for the loan.pv = This is the present value, which refers to the current worth of a series of future payments. It is also commonly known as the principal amount.fv = This is an optional parameter that indicates the desired cash balance to be achieved after the final payment. If not specified, it is assumed to be 0 (zero), meaning that the future value of the loan is 0.type = This is an optional parameter that can take the values of either 0 or 1. It determines when the payments are due. – 0 or omitted: Payments are due at the end of each period. – 1: Payments are due at the beginning of each period. |
MIRR | The modified internal rate of return (MIRR) Excel function is a powerful tool for financial analysis and decision-making. | =MIRR(values,finance_rate,reinvest_rate)values = This parameter requires an array or a reference to cells containing numerical values. finance_rate = This parameter is essential and represents the interest rate applied to the money utilized in the cash flows.reinvest_rate = This parameter is also crucial and signifies the interest rate received on the cash flows when they are reinvested. |
NPV | NPV Excel functions are powerful tools used in financial analysis to evaluate the profitability of an investment or project. | =NPV(rate,value1,[value2],…)rate = This field is mandatory and represents the discount rate applicable for a single period.value = Value1 is a mandatory field, while the subsequent values are optional. You can input anywhere between 1 to 254 arguments, which should represent the payments and income. |
IRR | IRR (Internal Rate of Return) is a financial metric used to evaluate the profitability of an investment. | =IRR(values,[guess])values = This parameter requires an array or a reference to cells that contain numbers.guess = This parameter allows you to provide a number that you believe is close to the expected result of the internal rate of return calculation. |
XIRR | The XIRR Excel function is a powerful tool used for calculating the internal rate of return (IRR) for a series of cash flows with irregular timing. | =XIRR(values,dates,[guess])values = This parameter represents a series of cash flows that align with a predetermined schedule of payments. dates = This parameter refers to a schedule of payment dates that correspond to the cash flow payments.guess = This parameter is optional and allows you to provide an estimated value that is close to the expected result of XIRR. |
XNPV | The XNPV (Extended Net Present Value) function in Excel is a powerful tool that allows financial professionals to calculate the present value of a series of cash flows and have more control over the timing of these cash flows. | =XNPV(rate,values,dates)rate = This parameter represents the discount rate that will be utilized to evaluate the cash flows.values = This aspect pertains to a sequence of cash flows that align with a predetermined payment schedule. dates = This mandatory element outlines the schedule of payment dates that correspond to the cash flow payments. |
#2 – Logical Functions
Logical functions in Excel are powerful tools that allow users to analyze data and make decisions based on specified criteria.
Functions | Description | Syntax |
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AND | The “AND” function in Excel is a powerful tool that allows users to perform logical tests on multiple conditions simultaneously. | =AND(logical1,[logical2],…)logical = The conditions are referred to as “logical1,” “logical2,” and so forth. |
IF | The IF function in Excel is a powerful tool that allows users to perform logical comparisons and make decisions based on the results. | =IF(logical_test,[value_if_true],[value_if_false])logical_test = This parameter is used to test a condition and can be evaluated as either TRUE or FALSE.value_if_true = This parameter specifies the value to be returned when the logical test evaluates to TRUE, indicating that the condition is met.value_if_false = This parameter determines the value to be returned when the logical test evaluates to FALSE, indicating that the condition is not met. |
OR | The OR function in Excel is a powerful tool for logical analysis and decision-making. | =OR(logical1,[logical2],…)logical 1 = This represents the first condition or logical value to be evaluated.logical 2 =This represents the second condition or logical value to be evaluated. |
NOT | In Excel, the “not” function is a logical function that returns the opposite of a given logical value. | =NOT(logical)logical = This argument should be a logical or numerical value. |
#3 – Text Functions
Text functions in Excel allow users to manipulate and analyze textual data efficiently.
Functions | Description | Syntax |
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CHAR | The CHAR function falls under the category of Excel Text Functions. Its purpose is to return a character based on a specified number. | =CHAR(number)number = This parameter requires a number ranging from 1 to 255, indicating the desired character. |
EXACT | The function compares two text strings and returns TRUE if they are identical and FALSE if they differ. EXACT is case-sensitive but disregards differences in formatting. | =EXACT(text1,text2)text1 = This parameter represents the first text string that needs to be compared.text2 = This parameter represents the second text string that needs to be compared. |
FIND | The FIND function always considers each character, whether it is a single-byte or double-byte, as 1, regardless of the default language setting. | =FIND(find_text,within_text,[start_num])find_text = This is the text you wish to locate.within_text = This is the text that contains the text you want to find.start_num = This parameter is optional and indicates the character from which the search should begin. |
TEXT | The TEXT function allows for the modification of the appearance of a number by applying formatting to it using format codes. | =TEXT(value,format_text)value = refers to the numerical value that requires conversion to text.format_text = represents the desired format that we wish to apply. |
TRIM | The TRIM function is classified under Excel’s Text functions. | =TRIM(text)text = This refers to the text from which we intend to eliminate spaces. |
REPLACE | The REPLACE function’s purpose is to substitute a portion of a text string with a different text string based on the specified number of characters. | =REPLACE(old_text,start_num,num_chars,new_text)old_text = This refers to the text that requires character replacement. start_num = It denotes the position of the first character within the old_text that needs to be replaced. num_chars = This represents the number of characters that should be replaced. new_text = It signifies the text that will replace the specified characters. |
SUBSTITUTE | The SUBSTITUTE function is a valuable tool for replacing one or more text strings with another text string. | =SUBSTITUTE(text,old_text,new_text,[instance_num])text = This refers to the text itself or a reference to a cell containing the text that requires character substitution. old_text = This represents the text we intend to replace. new_text = This signifies the text we desire to use as a replacement for the old_text. instance_num = This parameter allows us to specify the occurrence of old_text that we wish to replace with new_text. |
#4 – Date And Time Functions
The Date and Time functions in Excel provide powerful tools for managing and manipulating dates and times in your spreadsheets.
Functions | Description | Syntax |
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DATE | The DATE function in Excel is a powerful tool used to represent dates and times by inputting numerical arguments into a specific code. | =DATE(year,month,day) year = This argument specifies the desired year to be used in creating the date.month = This argument determines the month to be utilized in creating the date.day = This argument designates the specific day to be incorporated into the date. |
DAY | This function retrieves the day of a given date, which is represented by a serial number. The day is expressed as an integer ranging from 1 to 31. | =DAY(serial_number)serial_number = This refers to the date for which you want to determine the day. |
TODAY | The TODAY function falls under the category of Excel Date and Time functions. Its purpose is to calculate and provide the current date. | =TODAY()To utilize the TODAY function, no arguments are necessary. |
YEAR | The YEAR function is a Date/Time function in Excel that calculates the year number based on a given date. | =YEAR(serial_number)serial_number = The argument is mandatory and refers to the date for which we want to determine the year. |
#5 – Lookup & Reference Functions
Lookup & Reference Functions help us search and retrieve specific data from large datasets.
Functions | Description | Syntax |
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ADDRESS | The ADDRESS function is used to retrieve the address of a cell in a worksheet based on specified row and column numbers. | =ADDRESS(row_num,column_num,[abs_num],[a1],[sheet_text])row_num = This is a required parameter that accepts a numeric value representing the desired row number for the cell reference.column_num = Also a required parameter, it accepts a numeric value indicating the desired column number for the cell reference.abs_num = This parameter is optional and allows you to specify the type of reference to be returned.- If abs_num is one or omitted, an absolute reference is returned. – If abs_num is 2, an absolute row reference and a relative column reference are returned. – If abs_num is 3, a relative row reference and an absolute column reference are returned. – If abs_num is 4, a relative reference is returned.A1 = This parameter is optional and accepts a logical value that determines the reference style to be used. sheet_text = Another optional parameter that accepts a text value representing the name of the worksheet to be used as an external reference. |
COLUMN | The COLUMN function in Excel is a Lookup/Reference function that serves a valuable purpose in determining and providing the column number of a specified cell reference. | =COLUMN([reference])reference = The reference can either be a single cell address or a range of cells. |
VLOOKUP | The VLOOKUP function in Excel is a powerful tool that allows users to search for a specific value and retrieve a corresponding match based on a unique identifier. | =VLOOKUP(lookup_value,table_array,col_index_num,[range_lookup])lookup_value = This is a required parameter that represents the value we want to search for in the first column of a table or dataset.table_array = Also required, this parameter refers to the dataset or data array that we want to search within.col_index_num = Another required parameter, this integer specifies the column number in the table_array from which we want to retrieve a value.range_lookup = This parameter is optional and defines what the function should return if an exact match to the lookup_value is not found. |
HLOOKUP | HLOOKUP, short for Horizontal Lookup, is a powerful function that enables users to extract information from a table by searching for a specific value within a row and retrieving data from the corresponding column. | =HLOOKUP(lookup_value,table_array,row_index_num,[range_lookup])lookup_value = This refers to the value you want to search for within the table. table_array = This represents the table from which you wish to retrieve the desired data. row_index = This denotes the specific row number from which you want to extract the data. range_lookup = This is an optional parameter that allows you to specify whether you require an exact match or an approximate match. By default, the value is set to TRUE, indicating an approximate match. |
ROW | In Excel, a row refers to a horizontal alignment of cells that extends from the left to the right across the worksheet. | =ROW(reference)reference = This is an optional parameter that allows you to specify the cell or range of cells for which you desire to obtain the row number. |
#6 – Math Functions
Math Functions in Excel are a powerful tool for professionals seeking to perform complex mathematical calculations and analysis.
Functions | Description | Syntax |
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EVEN | The Excel EVEN function is designed to round numbers up to the nearest even integer. | =EVEN(number)number = The number that needs to be rounded up to the nearest even integer. |
ODD | The Excel ODD function is designed to return the next odd integer after rounding up a given number. | =ODD(number)number = Input the desired number that you wish to round up to an odd integer. |
SUM | The Excel SUM function calculates the total sum of the values provided. | =SUM(number1,[number2],…)number1 = The initial value to be included in the sum. number2 = An additional value to be added to the sum. |
ABS | The ABS function in Excel serves the purpose of obtaining the absolute value of a specified number. | =ABS(number)number = The numerical value for which the absolute value is to be determined. |
#7 – Statistical Functions
Statistical functions are an essential component of Excel that enable professionals to perform complex data analysis and make informed business decisions.
Functions | Description | Syntax |
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AVERAGE | The Excel AVERAGE function is designed to calculate the arithmetic mean of a set of supplied numbers. | =AVERAGE(number1,[number2],…)number1 = This parameter represents a number or cell reference that should correspond to numeric values. number2 = This parameter also represents a number or cell reference that should correspond to numeric values. |
COUNT | The Excel COUNT function is used to obtain a count of numerical values. | =COUNT(value1,[value2],…)value1 = This can be an item, cell reference, or range. value2 = This can also be an item, cell reference, or range. |
MAX | The Excel MAX function is designed to retrieve the highest numerical value from the given data. | =MAX(number1,[number2],…)number1 = This can be a number, a reference to a numeric value, or a range that contains numeric values. number2 = This can also be a number, a reference to a numeric value, or a range that contains numeric values. |
#8 – Information Functions
Information Functions in Excel are a valuable tool for professionals to analyze and manipulate data. These functions allow users to gather insights, perform calculations, and make informed decisions based on the information at hand.
Functions | Description | Syntax |
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ISBLANK | The Excel ISBLANK function is used to determine whether a cell is empty or not. It returns TRUE if the cell is empty and FALSE if it is not. | ISBLANK(value)value = This parameter represents the value that needs to be checked for emptiness. |
ISERROR | The Excel ISERROR function is designed to identify and handle various error types that can occur in Excel, such as #N/A, #VALUE!, #REF!, #DIV/0!, #NUM!, #NAME?, or #NULL!. | =ISERROR(value)value = This parameter represents the value that needs to be checked for any errors. |
ISNA | The Excel ISNA function is designed to determine whether a cell contains the #N/A error. | =ISNA(value)value = The value to be checked for the presence of #N/A. |
Frequently Asked Questions (FAQs)
Excel functions offer numerous advantages, such as their wide variety, which includes mathematical, statistical, logical, date and time, financial, and text functions. These functions allow users to analyze data sets efficiently, calculate complex formulas with ease, and generate accurate reports. Functions also enhance data accuracy by automatically updating formulas when underlying data changes.
While Excel offers a wide range of functions to facilitate complex calculations and data analysis, it does have certain limitations and restrictions.
● Firstly, some functions may not be available in older versions of Excel or specific editions such as Excel Online or Excel Mobile.
● Moreover, the functionality and compatibility can vary across different operating systems like Windows and macOS.
Some commonly used Excel functions include SUM, which allows users to quickly add up a range of numbers; AVERAGE, which calculates the mean of a given set of values; IF, enabling users to perform conditional calculations based on specific criteria; and CONCATENATE, which combines text strings from multiple cells into one cell.
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Guide to Excel Functions. We learn about the main Excel Functions of categories such as financial, logical, etc. with description and syntax. You can learn more from the following articles –
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