Absolute and Relative Cell addressing Explained. All formula in Excel should use cell addresses that reference the values you wish to perform calculations upon so that when changes are made to values in those cells, formula referencing the cells will automatically recalculate correct results. Relative and absolute cell addressing facilitate the copying of formula and functions that use cell addresses. When using relative cell addresses (the default) in Excel formula, the cell addresses in the formula will adjust accordingly as the formula is copied through the worksheet. For each row that the formula is copied down the worksheet, the row number of each relative cell address in the formula will increase by one, relative to the original location of the formula. For each column the formula is copied to the right across the worksheet, the column letter of each relative cell address in the formula will increase by one, relative to the original location of the formula. For example: Relative Cell addresses A B C D E 1 NAME HOURS HOURLY GROSS RATE PAY 2 FRED 40 8.00 =B2*C2 Formula copied from D2 through D5 3 JOE 40 9.00 =B3*C3 4 SUE 42 9.50 =B4*C4 5 MARY 38 8.25 =B5*C5 In the gross pay column examine our formula to calculate Grosspay. All cell addresses used in the formula are relative cell addresses, therefore they will adjust accordingly as the formula is copied from cell D2 through cell D5. Notice that the row numbers increase by one in each cell address as the formula is copied down the rows of the sheet. This occurs because each person has their own number of hours worked and their own hourly rate and this must be reflected in the formula to produce the correct results. Since entering the formula for each employee would be too time consuming if you had 20 or more employees, excel allows you to enter the formula once at the top of the column and copy the formula down the column or across the row as needed while the relative cell addresses change in the formula, relative to the original positio n of the formula in the spreadsheet. To see other examples of Relative and Absolute cell addresses, open this link If Function Pass Fail and Two Tax Rates Examples and examine the formula contained within the spreadsheets. Note: to open links as excel spreads heets that you can manipulate, right click the link and select save target as. Save the file to your computer system and select open, when prompted. Simply clicking on the link may only allow you to view the contents of the sheet. Absolute Cell Addresses A B C D E F 1 TAX RATE 37% 2 NAME HOURS HOURLY GROSS TAXES RATE PAY 3 FRED 40 8.00 =B3*C3 =D3*$C$1 Formula copied from E3 through E6 4 JOE 40 9.00 =B4*C4 =D4*$C$1 5 SUE 42 9.50 =B5*C5 =D5*$C$1 6 MARY 38 8.25 =B6*C6 =D6*$C$1 In this example we demonstrate both relative and absolute cell addresses being used in Excel formula at the same time. You can identify an absolute cell address in a formula by the $ that surround the cell address in the formula. Absolute cell addresses are used in a formula when you want a cell address to remain constant while the formula is copied through a spreadsheet. In this example the tax rate is the same for each employee, so instead of entering the tax rate multiple times in the sheet we enter it once and refer to the cell that contains the tax rate as absolute in all formula that reference the tax rate. As shown in column E above. Notice each employee has a gross pay cell. When calculating taxes we want the individuals gross pay taxed at the tax rate, therefore the grosspay cell address is relative in the taxes formula so it can change relative to the position of the formula in the sheet. The tax rate is always in cell address C1, so in order to keep that cell address constant while the formula is copied from E3 to E6 we make C1 absolute in the formula BEFORE we copy the formula. The absolute key is F4. It can be used to add $ to a cell address in a formula while entering or editing the formula. To see other examples of Absolute and Relative cell addresses, open this link If Function Pass Fail and Two Tax Rates Examples and examine the formula contained within the spreadsheets. Note: to open links as excel spreadsheets that you can manipulate, right click the link and select save target as. Save the file to your computer system and select open, when prompted. Simply clicking on the link may only allow you to vie w the contents of the sheet.