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remember using formulas to calculate simple math problems like two plus two equals four or two pizzas times ten dollars equals $20 you can use these same formulas to work with numerical data in your spreadsheets just like you would use a calculator Google sheets uses standard operators for math equations like a plus sign for addition a minus sign for subtraction an asterisk for multiplication a forward slash for division and a carrot for exponents you're probably used to seeing equations like five plus five equals but in Google sheets the equal sign comes first that's because the cell itself contains or is equal to the formula and its value we'll start things off slow with a simple addition formula to help calculate a budget as you can see I've already entered the initial amounts $1,200 for June and $1500 for July to create a formula select the cell where you want the total to appear then type an equal sign but instead of entering 1200 plus 1500 we're going to use cell references to create our formula a cell reference is when your formula contains cell addresses instead of the numbers in those cells they're useful because they make it possible to update your spreadsheet without ever having to rewrite your formulas the values we want are in cells D 10 and D 11 so we'll write the formula this way D 10 plus D 11 press ENTER on your keyboard and the formula totals the numbers in D 10 and D 11 whether we leave them the way they are or change them to something else say 500 and 900 the total recalculates automatically there's an even easier way to make cell references you'll need to use something called the point and click method why don't we give it a try on this formula here I want to calculate the cost of supplies that means I'll need to multiply the two numbers you see here 15 times eight point seven five so I'll start my equation then just click this cell to make reference to it now type your operator in my case an asterisk and click the next cell you want your formula press ENTER and the total appears editing formulas is also just a click away if you have any formulas that you want to fix or modify all you have to do is double click the cell for example this one is using the wrong cell reference we'll just make the change then press ENTER to recalculate now we're getting the correct answer as you can see simple formulas are really pretty simple once you know how to use them they can help you calculate all kinds of data in your spreadsheets GCF global creating opportunities for a better life