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Although it is perfectly possible to use Excel without ever creating a formula or using a function if you don-t, you-re missing out on a huge part of the application-s power. Without formulas and functions, Excel would not be able to perform its calculations. So, think of any scenario that involves addition, subtraction, division or multiplication and that-s where you-d use a formula. Functions are built-in formulas that have been programmed to perform a specific calculation. They can often be used to shorten and simplify what would otherwise be a long-winded manually-entered formula.