LiveFlow raises $13.5 million Series A led by New York-based Valar Ventures and launches LiveFlow Next to revolutionize accounting!
Read More
Arrow
Back to guides
Excel Formulas

How to Use Power Function in Excel (Basic Handbook)

In this article, you will learn to use the POWER formula in Excel using simple examples.

What is the POWER function in Excel?

The POWER formula in Excel is used to raise a selected number to a given power. It is particularly helpful to perform exponential calculations with large data sets in Excel workbooks.

Understanding the POWER formula syntax in Excel

=POWER(number, power)

In the above syntax, the “number” selected will be raised to the given “power”. In other words, the “number” refers to the base and “power” refers to the exponent.

For example: If you wish to find the value of 3 raised to the power 2 (in other words, the square of 3), you can use “=POWER(3,2)” which will display the result as 9. To further simplify, “=POWER(3,2)” is mathematically equivalent to (3)².

When do you use the POWER function in Excel?

The POWER formula can be used to calculate the exponential growth or discount of a value over time. For example: If you have a starting value and know the expected growth or discount rate, you can use the POWER formula in Excel to calculate the value at the end of any given period.

Similarly, it can also be used to determine future value. If you know the principal amount, the interest rate, and the number of compounding periods, you can use the POWER formula to calculate the future value of the investment.

The POWER formula can also be used as a building block for more complex formulas. For example, you can use the POWER formula to calculate the square or cube of a number and then use the result in another formula in Excel.

Inserting the POWER formula in Excel

Step 1: Select the cell where you wish to derive the result

Step 2: Type “=POWER” -> select the formula prompt -> select the cell which contains the number you want to use as the base -> insert a “,” (comma) ->  select the cell which contains the number you want to use as the exponent -> press the “Enter” key

For example: In the below image, 3 needs to be raised to the power 4. Hence, “=POWER(A3,B3)” is used, where cell A3 contains the base value 3 and cell B3 contains the exponent value 4. This will display the result to be 91.

Image displaying the POWER function in Excel

Note: The POWER function in Excel can be replaced using the “^” sign. For example: “=POWER(3,4)” can also be typed as “=3^4” in Excel. Both will give you the same result. 

Analyze your live financial data in a snap in Google Sheets

Are you learning this formula to visualize financial data, build a financial model, or conduct financial analysis? In that case, LiveFlow may help you automate manual workflows, update numbers in real-time, and save time. You can access various financial templates on our website, from the simple Income Statement to Multi-Currency Consolidated Financial Statement. Are you interested in this product but are an Excel user? That’s not a problem at all. You can connect Google Sheets to Excel quickly. 

To learn more about LiveFlow, book a demo.

Automate any custom financial dashboard in Google Sheets with LiveFlow

You can learn about other Excel and Google Sheets formulas and tips that are not mentioned here on this page: LiveFlow‘s How to Guides

Learn how to do this step-by-step in the video below 👇

Automate financial reporting with LiveFlow

Cta Photo

Want to eliminate manual updates of your Excel & Google Sheets models?

Yes, show me how!

Get personal help

We guarantee you personal help on chat or Zoom within maximum 6 hours between 9am and 10pm EST.
Blue Tick
Email us at: help@liveflow.io

Liked this article? Then you'll love the ones below

Supercharge your financial reporting today

See LiveFlow in action and discover how to streamline your workflows.