Google Sheets Formula for Budgeting

Problem Statement

You need to create a formula in Google Sheets to assist in budgeting your expenses and revenues. Assume you have a list of expenses and incomes, and you would like to calculate the total budget balance.

Formula Overview

To calculate the budget balance, you can use the SUM function to aggregate your expenses and incomes.

Formula

=SUM(IncomeRange) - SUM(ExpenseRange)

Explanation of the Formula

• SUM(IncomeRange): This part of the formula sums all values in the specified range representing your income. For example, if your incomes are listed in cells B2:B10, then SUM(B2:B10) will calculate the total income.

• SUM(ExpenseRange): This part sums all values in the specified range representing your expenses. For example, if expenses are listed in cells C2:C10, then SUM(C2:C10) will calculate the total expenses.

• Final Calculation: The formula subtracts the total expenses from the total income to provide the budget balance.

Practical Example

Assume the following data is laid out in your Google Sheets:

• Income data is in cells B2:B4.
• Expense data is in cells C2:C4.

Using the formula:

=SUM(B2:B4) - SUM(C2:C4)

Step-by-Step Calculation

1. Calculate Total Income:

   • SUM(B2:B4) = 5000 + 3000 + 4000 = 12000

2. Calculate Total Expenses:

   • SUM(C2:C4) = 2000 + 1500 + 2500 = 6000

3. Calculate Budget Balance:

   • Final Calculation: 12000 - 6000 = 6000

The final result, 6000, represents your budget surplus.

Conclusion

This formula enables you to dynamically calculate your budget balance in Google Sheets, offering clear insights into your financial standing. It is a versatile function suitable for various budgeting scenarios, hence enhancing your data analysis capabilities.

For further learning on advanced data manipulation in Google Sheets, consider exploring courses available on the Enterprise DNA Platform.