How to use ChatGPT to write Excel formulas: A Step-by-Step Guide

Excel is a powerful tool, but crafting the perfect formula can sometimes feel like deciphering an ancient code. But here comes ChatGPT, your new AI assistant for Excel mastery.

This article will walk you through leveraging ChatGPT to create formulas ranging from simple calculations to complex data manipulations.

Why Use ChatGPT for Excel Formulas?

1. Time-saving: Get formula suggestions instantly, without extensive searching.
2. Customization: Tailor formulas to your specific needs with natural language requests.
3. Learning tool: Understand formula logic through ChatGPT's explanations.
4. Accessibility: No need for specialized Excel formula websites or paid services.

Getting Started

1. Open your Excel spreadsheet and ChatGPT (chat.openai.com) side-by-side.
2. Familiarize yourself with your data structure (column names, cell references, etc.).

The Formula Creation Process

1. Craft a Clear Prompt: Be extremely specific about what you want the formula to do. Include relevant cell references, column names, and any calculations needed. Example: "Write an Excel formula to calculate a 7% sales tax on the value in cell D5, with the result in E5."
2. Analyze ChatGPT's Response: ChatGPT will provide a formula and often an explanation. Review the logic to ensure it matches your needs.
3. Test and Refine: Copy the formula into your Excel sheet. If it doesn't work as expected, analyze why and rephrase your prompt to ChatGPT.
4. Apply to Your Data: Once perfected, apply the formula to other cells as needed.

Pro Tips for Better Results

• Provide context: Briefly describe your spreadsheet structure if relevant.
• Ask for explanations: Request that ChatGPT break down complex formulas.
• Iterate: Don't hesitate to ask for modifications or improvements.
• Verify: Always double-check results, especially for critical calculations.

Example Walkthrough: Garden center's monthly sales data

Here's a sample datasheet that we will use throughout this tutorial.

This dataset provides a good foundation for various formula exercises:

1. Column F (Total Sales) can be calculated by multiplying Units Sold by Price per Unit.
2. Column G (Sales Tax) can be a percentage of Total Sales.
3. Column H (Commission) can be calculated using a tiered system based on Total Sales.
4. Column I (Total) will sum up Total Sales, Sales Tax, and Commission.
5. Column J (Remaining Stock) will subtract Units Sold from Quantity in Stock.

We'll cover basic calculations, inventory management, and advanced plant-specific analyses. Let's start then! First familiarize yourself with the data structure and entries to make your prompts specific.

1. Basic Revenue Calculation

Let's start by calculating the Total Revenue in column F.

Prompt to ChatGPT: "Create an Excel formula to calculate Total Revenue in cell F2 by multiplying Units Sold (D2) by Price per Unit (E2)."

Implement this formula in cell F2 and copy it down the column.

2. Dynamic Profit Margin Calculation

Now, let's calculate the Profit Margin in column I, assuming different margins for different plant types.

Prompt: "Create an Excel formula for cell I2 that calculates profit margin as a percentage of Total Revenue (F2). Use these rules:

• 30% for Roses and Orchids
• 40% for Tomatoes, Herbs Mix, and Berry Bushes
• 35% for all other plants"

Implement and test this formula.

3. Intelligent Reorder Status

For column J, we'll create a formula that suggests when to reorder based on current stock levels.

Prompt: "Create a formula for J2 that displays 'Reorder' if the remaining stock (Initial Stock minus Units Sold) is less than 20% of the Initial Stock, 'Low Stock' if it's between 20% and 40%, and 'Adequate' otherwise."

To input the formula: Click on cell J2, Type or paste the formula provided above, and Press Enter. Adjust thresholds if needed

4. Total Water Usage Calculation

Let's calculate the total water usage for all sold plants.

Prompt: "Create a formula to calculate the total water usage for all sold plants. Multiply the Units Sold by Water Usage for each row, then sum the results."

To input the formula: Click on the cell where you want to display the total water usage. Type or paste the formula provided above, and Press Enter.

5. Identifying Fast-Growing, High-Selling Plants

Now for a more complex analysis: identifying plants that grow quickly and sell well.

Prompt: "Create a formula that returns 'High Potential' if a plant's Growth Time is less than 60 days AND it has sold more than 30 units. Otherwise, return 'Standard'."

6. Calculating Optimal Reorder Quantity

Let's create an advanced formula for suggesting reorder quantities.

Prompt: "Create a formula to suggest a reorder quantity. Use this logic:

• If current stock (Initial Stock minus Units Sold) is less than 20 units, reorder enough to bring total up to 50 units
• If current stock is between 20 and 40 units, reorder 30 units
• If current stock is over 40 units, reorder 10 units
• However, if the plant's Growth Time is over 100 days, always reorder 50 units regardless of current stock"

 =IF(H2>100, 50, 
    IF((C2-D2)<20, 50-(C2-D2), 
        IF((C2-D2)<40, 30, 10)))        

Add a new column for "Suggested Reorder Quantity" and apply this formula.

7. Calculating Revenue per Gallon of Water

For an environmental efficiency metric, let's calculate revenue generated per gallon of water used.

Prompt: "Create a formula to calculate revenue per gallon of water used. Divide Total Revenue by (Units Sold * Water Usage)."

ChatGPT's response:

=F2/(D2*G2)        

Add a new column for this calculation.

8. Dynamic Pricing Suggestion

Finally, let's create a formula that suggests price adjustments based on sales performance.

Prompt: "Create a formula that suggests a price adjustment:

• If Units Sold is less than 20, suggest reducing the price by 10%
• If Units Sold is between 20 and 40, keep the current price
• If Units Sold is over 40, suggest increasing the price by 5% Display the suggested new price, rounded to two decimal places."

ChatGPT's response:

=ROUND(IF(D2<20, E2*0.9, IF(D2>40, E2*1.05, E2)), 2)        

Add a "Suggested Price" column with this formula.

ChatGPT is a powerful ally in your Excel journey. Remember, while ChatGPT is an incredible tool, always verify critical calculations and use it as a complement to your own Excel knowledge and problem-solving skills.

Don't hesitate to ask for explanations or modifications if the initial formula doesn't meet your needs. Use ChatGPT's suggestions as a starting point, then customize and expand based on your specific requirements. Happy calculating!!!