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A formula in a spreadsheet is an expression that calculates a value automatically. The key point to remember is that all formulas must start with an equals sign. Formulas combine values, cell references, functions, and operators to perform calculations and display results in your spreadsheet. Formulas consist of four main components. First, values are literal numbers like ten or five point five. Second, cell references point to other cells like A1 or B2. Third, operators are mathematical symbols for addition, subtraction, multiplication, and division. Fourth, functions are predefined calculations like SUM, AVERAGE, or VLOOKUP that perform complex operations automatically. Let's look at simple formula examples. Basic addition uses equals A1 plus B1 to add two cell values. Multiplication uses equals A1 times B1. For more complex calculations, you can combine operations like equals open parenthesis A1 plus B1 close parenthesis divided by 2 to find the average. When you enter a formula and press Enter, the spreadsheet calculates and displays the result. Functions are powerful tools in formulas that perform complex calculations automatically. The SUM function adds all values in a specified range like equals SUM A1 colon A5. The AVERAGE function calculates the mean of values in a range. The COUNT function counts how many cells contain numbers, ignoring empty cells. These functions save time and reduce errors in calculations. To summarize what we have learned about spreadsheet formulas: First, all formulas must start with an equals sign. Second, formulas combine values, cell references, operators, and functions to perform calculations. Third, they automate calculations and reduce manual errors. Fourth, built-in functions like SUM and AVERAGE perform complex operations efficiently. Finally, formulas are essential tools for data analysis and spreadsheet automation in any professional environment.