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The Best Microsoft Excel Formulas Every Business Professional Should Know

Whether you're managing budgets, analyzing data, or organizing projects, Microsoft Excel is one of the most powerful tools in a business professional's toolkit. But to unlock its full potential, you need more than just a basic understanding—you need the right formulas.

In this guide, we’ll break down the essential Excel formulas every business professional should know to work faster, smarter, and more accurately.

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1. SUM

Formula: =SUM(A1:A10)
Use the SUM function to add up values in a range. It’s the most basic and frequently used formula for everything from budget totals to sales reports.

Use case: Quickly calculate monthly revenue, total expenses, or product inventory totals.

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2. AVERAGE

Formula: =AVERAGE(B1:B10)
This finds the average (mean) of a range of numbers.

Use case: Determine average sales per employee, average customer rating, or average delivery time.

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3. IF

Formula: =IF(A1>1000, "High", "Low")
The IF function returns one value if a condition is true and another if it's false.

Use case: Flag large transactions, categorize customers, or trigger warnings when targets aren’t met.

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4. VLOOKUP / XLOOKUP

Formula (VLOOKUP): =VLOOKUP(lookup_value, table_array, col_index, FALSE)
Formula (XLOOKUP): =XLOOKUP(lookup_value, lookup_array, return_array, [if_not_found])
These functions search a table and return data from a specific column.

Use case: Find customer names by ID, match SKU numbers with product names, or retrieve sales data by region.

💡 Use XLOOKUP if you have Excel 365 or Excel 2019+, as it’s more flexible and reliable than VLOOKUP.

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5. INDEX + MATCH

Formula: =INDEX(B1:B10, MATCH("Product A", A1:A10, 0))
This combo is more powerful than VLOOKUP because it works with both horizontal and vertical arrays and allows leftward lookup.

Use case: Retrieve values based on multiple criteria or build dynamic dashboards.

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6. CONCAT / TEXTJOIN

Formula (CONCAT): =CONCAT(A1, " ", B1)
Formula (TEXTJOIN): =TEXTJOIN(", ", TRUE, A1:A5)
These formulas combine text from multiple cells.

Use case: Create full names from first and last name columns, or build mailing list strings.

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7. LEN

Formula: =LEN(A1)
Returns the number of characters in a cell.

Use case: Validate data entry (e.g., checking if ID numbers are the correct length).

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8. TRIM

Formula: =TRIM(A1)
Removes all extra spaces from a text string, except for single spaces between words.

Use case: Clean messy data pasted from external sources.

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9. COUNT / COUNTA / COUNTIF / COUNTIFS

• =COUNT(A1:A10) – Counts numbers.

• =COUNTA(A1:A10) – Counts non-empty cells.

• =COUNTIF(A1:A10, ">100") – Counts based on a condition.

• =COUNTIFS(A1:A10, ">100", B1:B10, "<500") – Multiple conditions.

Use case: Count how many sales exceed a threshold, or how many customers are in a specific region.

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10. NOW / TODAY

• =NOW() – Returns current date and time.

• =TODAY() – Returns the current date.

Use case: Timestamping, calculating deadlines, or showing real-time updates in dashboards.

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11. TEXT

Formula: =TEXT(A1, "MM/DD/YYYY")
Formats numbers and dates using custom text formats.

Use case: Format reports, generate readable timestamps, or convert numeric values into currency or percentages.

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12. ROUND / ROUNDUP / ROUNDDOWN

• =ROUND(A1, 2)

• =ROUNDUP(A1, 0)

• =ROUNDDOWN(A1, 0)

Use case: Standardize pricing, truncate extra decimals, or clean up financial statements.

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13. ISERROR / IFERROR

Formula: =IFERROR(A1/B1, "Error")
Handles errors gracefully by providing alternative values or messages.

Use case: Avoid #DIV/0! or #N/A errors in customer-facing reports.

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14. DATEDIF

Formula: =DATEDIF(A1, B1, "d")
Calculates the difference between two dates.

Use case: Track project durations, employee tenure, or time between transactions.

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15. UNIQUE / FILTER / SORT (Excel 365 only)

• =UNIQUE(A1:A10) – Returns unique values.

• =FILTER(A1:B10, B1:B10>1000) – Filters data based on conditions.

• =SORT(A1:A10, 1, TRUE) – Sorts data.

Use case: Create dynamic reports, clean up duplicates, or extract insights from large datasets.

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Final Thoughts

Mastering Excel formulas isn't just about saving time—it's about unlocking the full analytical power of your data. Whether you're preparing a quarterly report or analyzing sales trends, these formulas will help you work smarter, not harder.

Start by integrating a few of these formulas into your daily workflow. Once they become second nature, you’ll wonder how you ever managed without them.