Using Named Formulas or Constants

Besides allowing you to define a name that refers to a cell or cell range, Excel allows you to define names that refer to formulas or constant values. For instance, suppose you have a constant you will be using in your worksheet quite a bit--the standard commission rate for staff sales people, which is 8.5%. To define a name for this constant, follow these steps:

1. Select the Name option from the Insert menu and choose Define from the submenu. Excel displays the Define Name dialog box. (Click here to see a related figure.)
2. Change the Refers To field, at the bottom of the dialog box, so it contains the desired formula. In this example, you would change it to =8.5%.
3. Click on Add. Your name is now defined.
4. Click on OK to close the Define Name dialog box.

The constant is now available for use in your worksheet. You can then use it in formulas just as you would any other defined name.