How do you use a defined name in a formula?

Using a defined name in a formula simplifies referencing specific values or ranges within your workbook. When you use the defined name directly in the formula, Excel recognizes the name and replaces it with the appropriate cell reference or value associated with that name at calculation time. This approach not only makes the formulas easier to read and understand but also enhances the maintainability of your workbook, as you can change the underlying range associated with the defined name without needing to update multiple formulas.

For example, if you defined a name "Sales" for the range A1:A10, you could write a formula such as =SUM(Sales). This is much clearer than using the reference =SUM(A1:A10), especially in complex spreadsheets.

The other methods of referencing, such as using a hashtag or cell addresses, do not leverage the benefits of defined names as effectively. Additionally, while it is possible to use defined names in function arguments, such usage should still involve directly referencing the name within the formula for clarity and effectiveness. Thus, using the name directly is the optimal choice when constructing formulas.