Relative Vs. Absolute References in Formulas

Excel Tip #005

Relative Vs. Absolute References in Formulas

A reference in excel "Identifies a cell (or) a range of cells on a worksheet and tells Microsoft Excel where to look for the values (or) data you want to use in a formula".

Difference between Relative and Absolute references

When you say a reference is relative, you are telling excel to adjust that reference in formulas based on where you move or copy the formula. For example, if you have a formula in cell B2 as =A2*2 and now if you copy paste this in another cell, lets say, C2, the new formula would read like =B2*2
Relative reference
When you say a reference is absolute (denoted by $ symbol), you are telling excel not to adjust that reference in formulas when you move or copy them.
Absolute reference
Switching between Relative and Absolute references

While editing the formula you can use F4 function key to change the reference of a cell on which cursor is focused. By pressing F4, excel switches the references between relative (A2), absolute ($A$2), relative column & absolute row (A$2) and absolute column & relative row ($A2).

Understanding relative & absolute references plays a key role in writing effective spreadsheet formulas.

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