What is the Difference Between Function and Formula?

The main difference between a function and a formula lies in their definitions and usage in spreadsheet applications like Excel:

• Formula: A formula is an equation designed by a user in Excel, featuring a combination of cell references, operators, and functions to perform a specific calculation. For example, =A1*A2 is a formula that multiplies the values in cells A1 and A2.
• Function: A function is a predefined calculation in the spreadsheet application that takes one or more arguments and returns a result. Functions are written with specific values known as arguments, and they follow a particular syntax. Examples of functions include SUM(), AVERAGE(), and NPV().

In summary:

• Formulas are user-created equations that can include functions, operators, and cell references.
• Functions are predefined calculations in spreadsheet applications that take arguments and return results.

While the terms "formula" and "function" are often used interchangeably in everyday language, it's essential to understand their differences when working with spreadsheet applications.

Comparative Table: Function vs Formula

Here is a table summarizing the differences between a function and a formula in Excel:

In summary, a function is a predefined calculation in Excel, while a formula is a user-designed equation. Formulas can be used for complex calculative measurements, while functions are used for quick arrangements like finding the minimum, maximum, average, etc.. Users can combine functions and formulas to create even more powerful analyses.