How Relative and Absolute References Work in Excel

Relative and absolute references are one of the key concepts to master as you move up to an intermediate Excel user.

A relative reference is when a formula points to a cell a certain distance away. For example, it may say, “Multiply the cell immediately to the left of me by 2.”

If you were to fill, drag, or copy-paste a formula containing a relative reference to a new cell (or cells), the formula would automatically update to point to what’s immediately to the left of that new cell.

An absolute reference points to a specific cell. For example, it may say, “Multiply the value of cell A3 by 2.

If you fill, drag, or copy-paste a formula containing an absolute reference, every copy of that formula continues to point to the same cell, no matter where the formula is located.

In formulas, you distinguish absolute references from relative references by putting dollar signs in front of the letter and number. =$A$3 is an absolute reference. =A3 is a relative reference.

You can also quickly change a relative reference to an absolute reference by hitting F4.

A more detailed explanation is in the video above.

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