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How Function Works in Excel - Understanding Function Library, Arguments and Volatile Result
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Apr 21, 2025
In this Excel tutorial, we'll explore how to use functions from the Function Library, understand what function arguments are, and see how the Function Arguments dialog box works. You'll learn about volatile functions like TODAY(), how to work with functions that require arguments like YEAR() and DAYS(), and how to create powerful nested functions using real-world examples. I'll also show you how to edit formulas safely and how nesting functions. 00:00 Inserting Functions with Function Library 01:36 Volatile Result 02:17 Understanding Arguments 03:32 Writing Functions Directly into Cells 03:57 Editing Functions 04:43 Nesting Functions 05:30 Understanding Common Errors
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0:00
hi today we're talking about Excel
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functions how they work and how you can
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use them in your worksheets let's start
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with inserting a function one of the
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most commonly used functions in Excel is
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sum to use it just select the cell right
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below your numbers click the autosum
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button on the ribbon and Excel
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automatically inserts the sum function
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to calculate the total you can also
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insert a function manually by typing it
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directly into a cell for example if you
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want to enter today's date just type an
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equal sign which tells Excel you're
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entering a formula then type the word
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today followed by parenthesis this
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function doesn't need any inputs and it
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returns the current date in the cell
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another way to add functions is by using
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the function library found in the
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formulas tab it's a convenient option
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because you can browse through
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categories like financial logical text
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date and time and many more when you
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select a function from the library for
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example let's choose the today function
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excel opens a window called the function
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arguments dialog box this box provides
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helpful details about the function
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you've selected at the top it says this
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function returns the current date
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formatted as a date the word returns
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means the result the function gives back
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after runs in this case it places
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today's date into the cell where the
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formula is written the next line reads
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"This function takes no arguments."
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Arguments are the pieces of information
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or inputs you provide to a function so
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it can perform its task some functions
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need arguments and some like today or
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now don't require any we'll discuss
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arguments in more detail later when we
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use functions that do require user input
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finally at the bottom it says formula
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result equals volatile in Excel a
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volatile function is one whose result
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updates automatically every time the
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worksheet recalculates for example right
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now while I'm recording this video
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tutorial the date just changed as it hit
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12:01 a.m now let's go ahead and change
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any cell value that affect the
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calculation like updating a number in
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our formula the moment we do that watch
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what happens both cells containing the
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today formula instantly update to show
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the new current date this happens
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because the today function is what we
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call a volatile function a function
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whose result updates automatically
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whenever Excel recalculates now let's
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use some functions that take arguments
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we'll start with the year function it
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takes a single argument called serial
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number which is basically a date you can
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either type the date directly or use a
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cell reference that contains the date
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the function then returns just the year
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part of that date some functions require
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two arguments for example the days
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function to try it out let's first write
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two different dates in our sheet then go
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to the function library in the formulas
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tab and select the days function you'll
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see the function arguments dialogue box
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appear with two input boxes one for
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end_ate and one for start underscore
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date select the cell with the earlier
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date for the start underscore date box
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and the cell with the later date for the
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n date box notice how the result is
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displayed right there in the dialogue
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box click okay and now Excel calculates
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the total number of days between those
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two dates other functions like sum can
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take multiple arguments up to 256 of
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them you can list individual numbers
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cell references or entire ranges let's
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write a sum formula in a cell type some
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values separated by commas remember each
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value or range you add is called an
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argument press enter and you'll see the
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total of your provided values displayed
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instantly just like we manually wrote
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the sum function directly into a cell
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instead of using the function library
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you can actually type out any function
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this way you don't have to rely on a
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library but for beginners it's really
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helpful to use the function library
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because it guides you through the
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process showing which arguments a
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function needs and how it works even
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experienced users sometimes turn to it
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when they need a quick reminder about a
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function's details or structure if you
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ever need to edit a function you've
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written it's important to remember if
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you just type over the result in the
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cell it'll delete the existing formula
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to properly edit a formula or function
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you need to enter edit mode first you
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can do this in a few ways the quickest
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way is to doubleclick the cell
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containing the formula and you'll see
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the formula appear right there in the
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cell ready for editing another way is to
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click on the cell and press F2 on your
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keyboard this also opens the formula
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directly in the cell for editing or you
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can simply click the cell once and look
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up at the formula bar at the top of the
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screen you'll see the formula displayed
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there too and you can edit it from that
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spot from any of these places you can
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adjust the functions arguments fix
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mistakes or even replace the function
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entirely you can also use one function
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inside another this is called a nested
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function it might sound complicated at
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first but it's actually very simple once
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you get the hang of it for example
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imagine you have a mix of positive and
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negative numbers in a range and you want
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to add up the absolute values ignoring
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whether they're positive or negative you
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could write a formula like the one shown
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on the screen in this case the abs
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function turns each number in the range
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into its absolute value removing the
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sign then the sum function adds them all
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together to give you the total just
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remember Excel always calculates the
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innermost function first and then works
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its way outward and once you're
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comfortable nesting one function you can
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start combining two three or even more
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functions together to build really
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powerful customized formulas thanks for
5:29
watching if you found this helpful like
5:31
the video and subscribe for more Excel
5:33
tips see you in the next tutorial
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