Understanding Absolute and Relative Reference in Excel (Video transcript)
In this lecture, we will discover the importance of Absolute and relative cell reference.
Let’s start by relative cell reference. Let’s use an example. If the company of these employee wants to increase their salary by 3000 dollars, we can simply add and copy to down.
=B2+3000. Look at the cell reference, they are changing for each employee. So the reference is relative. It will change from time to time.
How about the absolute reference type. This will be a fixed type. let’s be another scenario. If we want to increase by 3%% percent. So the formula will be=B2*F1+B2, the base salary.
Now let’s try to drag it down. there is now a change. It is referring to empty cells. so let’s make this absolute. we can press F4 to change that. Now lets copy and see the result. Now it is referring to the percentage increase as we need it.