How can I make my Excel formulas more readable?

Microsoft Excel is a powerful tool.  You can use it to track your personal budget, create a shopping list, or build a corporate cash-flow statement.  Sometimes, troubleshooting an Excel file can be difficult, though.  As you can see in examples below, the variables in an equation are represented by grid coordinates consisting of letters and numbers.  This means that you must look at the coordinates and try to figure out what the variable actually represents.  There is a better way.  If you right-click on a cell and click “Define Name”, you can rename the cell.  This means that instead of the cell being named “D2” it can be named “Hourly Wage”.  This will allow you to develop much more “human readable” Excel formulas.

Example of a simple budget calculator

Step 1

Step 2

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