While it may look easy but it may become complex when one had to get deeper into what it does with functions about formulas and cell references, which are the two basic kinds of cell references available in Excel, namely the relative and absolute references.
Knowing when and how to switch between them will drastically increase your efficiency and accuracy with Excel. This could be data analysis, financial modeling, project management and much more.
Here, we discuss relative vs. absolute references in Excel. We explain why these references matter and then show you how easily you can switch between them. Understanding these references unlocks the full potential of formula capabilities in Excel.
What Are Cell References in Excel?
Before understanding relative and absolute references, let’s first understand what a cell reference is. A cell reference is the address of a cell in an Excel worksheet. It tells Excel where to look for data to use in formulas. For example, if a formula refers to cell A1, then Excel will retrieve the data or value from that particular cell and use it in the calculation.
There are three basic types of cell references in Excel:
Relative references; These change whenever the formula is copied or moved to another cell, this is the default Option, in Excel, relative references are the default type of reference when you write a formula. A relative reference is one that refers to a cell’s position relative to where the formula is located. For example, if you enter the formula =A1+B1 in cell C1, Excel looks at the values in cells A1 and B1 and returns their sum.
But whenever you copy and paste it down to C2 from C1, relative references make all of those adjust by moving them over one spot over in order to reference the relative cell addresses A2, B2 instead. For example, relative references adapt; they will automatically modify, as it will shift for its placement of a cell address, according to that specific cell address of reference. That makes relative reference aptly used for repeating formulas within various columns or rows.
Example:
Formula in cell C1: =A1+B1
Formula in cell C2 after copying: =A2+B2
This behavior allows you to easily apply the same formula across multiple rows or columns without manually changing the cell references.
Absolute References; Do not update when formula is copied or moved, also the freezing the Cell Reference, there are occasions where you may need to refer to a cell that should not shift; it doesn’t make any difference whether you move or copy the formula. This is where an absolute reference will come in quite handy.
An absolute reference, within Excel, is notated by using an underscore ($). Its “anchors” the reference to the specific row and/or column. There are three forms of absolute references:
Absolute Column and Row: A$1 – Both column and row are locked.
Absolute Row Only: A$1 – Row is locked while column is relative
Absolute Column Only: $A1 – Column is locked while row is relative.
Whenever you copy and paste a formula using absolute references, the cell it is referencing never changes. This is perfect for constant or fixed values applied all over your worksheet, such as the tax rate or even conversion factors.
Example:
Formula in cell C1: =A1*$B$1
If you copy this formula to cell C2, it will remain =A2*$B$1 because $B$1 is an absolute reference, while A1 is relative.
In this case, the formula will always refer to $B$1 regardless of where you copy it, but the reference to A1 will change based on the row.
Switching Between Relative and Absolute References
Now that we have understood what each of these two types of references does, let’s know how one can easily switch between them in Excel.
Switching Between Relative and Absolute References
Using the F4 Key
This is probably the easiest way to toggle between relative, absolute, and mixed references in Excel. It works exactly the same on all versions of Excel for Windows and Mac.
To do this,
-Highlight the cell that contains the formula.
-Click on the reference in the formula bar you want to change.
-Toggle through the available reference options with F4
Every time you use F4 Excel cycles between the following:
Relative Reference example – A1 Absolute reference example – $A$1 Mixed reference with fixed row example – A$1 Mixed reference with fixed column example – $A1, this is simply a faster mode of interchanging references and not type in all those dollar signs.
CONCLUSION;
Switching from relative to absolute references or vice versa in Excel may be a critical skill set that can help you complete your work faster and avoid formulas acting in ways you wouldn’t expect. Understanding what makes a reference relative, absolute, or mixed means you can create more adaptable and efficient spreadsheets and save time and reduce the errors that occur.
It means you can just press the F4 key to switch between relative and absolute references in a snap. Knowing how and when to use them gives you an edge in sorting out a variety of jobs from simple calculations up to real data analysis in Excel. With regards to the task, either the tracking of expenses, or financial modeling, or perhaps the processing of large amounts of data, knowing what references are will make the individual an Excel master within a very short time.