At their most basic, Excel formulas can perform basic math functions and display a solution. For example, the formula "=2+2" will display "4" in the cell.

In Excel spreadsheets, complex formulas are difficult to enter without making mistakes. Microsoft Excel’s LAMBDA() function can make such errors easier to find.

This is the formula you use to calculate Social Security tax: you multiply the employee's income by the Social Security rate, which is 4.2 percent, equivalent to 0.042.