What is the difference between Absolute and Relative Cell References in Excel?

When working with formulas in Microsoft Excel, understanding the difference between absolute and relative cell references is crucial.

Absolute Cell References:

An absolute cell reference in Excel is fixed and does not change when copied or filled. It is denoted by adding a dollar sign ($) before the column and/or row reference. For example, $A$1 is an absolute reference to cell A1.

Relative Cell References:

A relative cell reference in Excel changes based on the location to which it is copied or filled. When a formula with relative references is copied to another cell, the reference adjusts based on the new location. For example, if you have a formula that refers to cell A1 and you copy it to the cell below, it will reference cell A2.

Understanding how to use absolute and relative cell references can help you create more dynamic and flexible formulas in Excel.