How to Make an Absolute Reference in Excel

Microsoft Excel is one of the most widely used spreadsheet programs in the world. It’s an incredibly useful tool for organizing and analyzing data. However, like any software, it can be tricky to use if you’re not familiar with its various functions and features. One of the functions that can be particularly confusing is the absolute reference. An absolute reference is a specific type of cell reference that allows you to fix a cell address in a formula. In this blog post, we’ll take a closer look at how to make an absolute reference in Excel.

Understanding Cell References in Excel

When creating formulas in Excel, you can refer to cells in four different ways: relative, absolute, mixed relative/absolute, and external cell references. Relative cell references are the most common, but sometimes you want a cell reference to stay the same, even if you copy or move the formula. This is where absolute cell references come in handy.

The Syntax of Absolute References

The syntax of an absolute reference is simple. You just need to add a “$” sign in front of both the column letter and row number that you want to be fixed in the formula. For example, if you want to fix the reference to cell A1 in a formula, you would write it as $A$1.

Two Types of Absolute References

There are two types of absolute references in Excel, Absolute Column References, and Absolute Row References.

Absolute Column Reference

If you want to fix a column in a formula and allow the row to vary, you should use an Absolute Column Reference. To do this, just add a “$” sign in front of the column letter you want to fix. For example, if you want to fix column A in a formula but allow the row number to vary, you would write it as $A1.

Absolute Row Reference

If you want to fix a row in a formula and allow the column to vary, you should use an Absolute Row Reference. To do this, just add a “$” sign in front of the row number you want to fix. For example, if you want to fix row 1 in a formula but allow the column to vary, you would write it as A$1.

How to Create an Absolute Reference in Excel

Now that you understand the syntax of Absolute References and the two types of Absolute References, let’s take a look at how to create an Absolute Reference in a formula.

Step 1: Open a new or existing workbook

Start by opening a new or existing workbook in Microsoft Excel that you want to work with.

Step 2: Create a formula using a Relative Reference

Next, create a formula using a Relative Reference that you want to turn into an Absolute Reference. You can enter this formula in any cell.

Step 3: Convert the relative cell reference to an absolute cell reference

Click on the cell containing the formula, then click inside the formula bar at the top of the screen. Next, click on the cell reference that you want to make absolute.

Step 4: Add the “$” symbol

Add a “$” symbol before the column letter and row number for the cell reference.

Step 5: Press Enter

Press the “Enter” key to save the changes. The cell reference will now be absolute.

Absolute References are an essential tool for working with formulas in Microsoft Excel. By understanding how to create an Absolute Reference, you can prevent your formulas from breaking when you move or copy them. Now that you know how to create an Absolute Reference in Excel, you can start working on your own worksheets and making your formulas even more powerful.

Absolute Reference Examples

Here are a few examples of how to use Absolute References:

Example 1: Summing Columns with an Absolute Reference

Suppose you need to sum up column A, and you want to use this formula for other columns, too. You can use an Absolute Reference to ensure that the formula always sums up column A:

=SUM($A:$A)

This formula will sum up column A and only column A, no matter where you copy or move it to.

Example 2: Computing Percentage Change with an Absolute Reference

Suppose you have a table of sales data for three years, and you want to calculate the percentage change from year 1 to year 2, and from year 1 to year 3. Here’s how you can do this with an Absolute Reference:

= (B2-$B$2) / $B$2

This formula computes the percentage change in cell B2 (year 2) compared to cell B$2 (year 1), but uses the absolute reference to lock in the denominator ($B$2) as the sales figure for year 1, so it doesn’t change as you copy or move the formula to other cells.

Relative References vs. Absolute References

Relative References, when copying formulas, adjust the formula depending on where it is copied. In contrast, an Absolute Reference will keep its reference to the same cell, regardless of where it is copied or moved to.

When to use Relative References

When formulas are copied horizontally or vertically and need to adjust the cell reference, use a Relative Reference. Using Relative references is helpful when creating the same formula that will be applied to different cells across a worksheet.

When to use Absolute References

When applying the formulas to different cells across the worksheet, and the reference needs to stay fixed regardless of where it is copied, use an Absolute Reference. Using Absolute references is helpful when the cells used for input and output of the formula are generally stationary, such as fixed budgets, targets, and constants.

Wrap Up

Absolute References are an incredibly useful tool in Excel that allows you to maintain consistency across your spreadsheets. This guide’s step-by-step instructions should help you create Absolute References and distinguish them from Relative References. With these tips in mind, you’ll be better equipped to master Excel’s formulas and increase your efficiency in organizing and analyzing data.

FAQs

Here are a few commonly asked questions about Absolute References in Excel:

What is an Absolute Reference in Excel?

An Absolute Reference in Excel is a reference to a specific cell in a worksheet that will not change even when a formula is copied or moved to another cell. The cell reference can be a row or column, or both.

What is the difference between an Absolute Reference and a Relative Reference?

The main difference between Absolute and Relative references is that Absolute references don’t change when a formula is copied or moved. In contrast, Relative references change based on their new location. This distinction allows you to create complex formulas quickly and easily.

How do I convert a Relative Reference to an Absolute Reference in Excel?

To convert a Relative Reference to an Absolute Reference, change the cell reference into one that uses a ‘$’ sign. For example, if the cell reference is “A1,” an Absolute Reference would be written as “$A$1.”

Can Absolute References be used with range references?

Absolutely! When using range references with Absolute References, just apply the reference to the cell range you need to fix, like “$A$1:$D10.”

What is the benefit of using Absolute References in Excel?

Absolute References prevent cell reference errors when a formula is copied or moved to a new cell. By making specific cell references absolute, you can ensure that your formulas always return the correct results, no matter where they are on the worksheet.