How to use relative references in Excel?

Referencing a cell in excel is integral into making effective spreadsheets. If you improperly reference a cell in excel then you will not get the output you want. Referencing a cell is putting one cell as equal to another one or a function of another.

The first reference I will show you is the relative reference. Let’s say that I want to reference cell b2 and want to multiply it by cell c3. In a relative reference I will just type in "=b2*c3" A relative reference means that it will be relative to where I place it. So if I copy the reference to another cell then it will move where the cell is referencing. So if I wanted to copy it to a lower cell then it would reference cells below it. This is valuable when you want to build a chart with references that all move as you drag them along. This will in essence make them slide.



This is an example of a relative reference. You can see that as the chart moves along it always references the number above and to the left and multiplies them. This isn't an incredibly practical thing to do, but it's valuable to understand what is happening when you see your numbers get huge really quickly so you can fix the error. In a later tutorial I will show you how to use mixed references and absolute references which are more common in financial applications and will help you create great spreadsheets that do exactly what you want
 
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