MS EXCEL- Relative Reference and Absolute Reference
Relative references
A relative cell reference in a formula, such as A1, is based on the relative position of the cell that contains the formula and the cell the reference refers to. If the position of the cell that contains the formula changes, the reference is changed. If you copy or fill the formula across rows or down columns, the reference automatically adjusts. By default, new formulas use relative references.
For example, if you copy or fill a relative reference in cell D5 to cell D6, it automatically adjusts from =B5*C5 (shown in the above photo) to =B6*C6 (shown below.)
Absolute references
An absolute cell reference in a formula, such as $E$4, always refer to a cell in a specific location. If the position of the cell that contains the formula changes, the absolute reference remains the same. If you copy or fill the formula across rows or down columns, the absolute reference does not adjust. By default, new formulas use relative references, so you may need to switch them to absolute references. For example, if you copy or fill an absolute reference in cell D6 to cell D7, it stays the same in both cells: =$E$4.
For example, if you copy or fill an absolute reference in cell D6 to cell D7, the relative cells automatically adjusts from =(B6*C6)*$E$4 to =(B6*C6)*$E$4, however notice that the absolute reference remains the same in both cells: =$E$4.