Whoever encounters a nested formula in an inherited or old Excel spreadsheet often does not immediately understand what it calculates. Such finds appear in accounting, controlling, or order lists that have been maintained over the years by changing colleagues. Microsoft has expanded Copilot in Excel with a function that explains such formulas in simple sentences and also corrects them if necessary. The function requires no programming knowledge and can be operated directly in the cell.
Copilot explains a marked formula in everyday language
Copilot reads the formula in the marked cell and translates it into understandable sentences according to Microsoft – for example, what is added, compared, or filtered out from a list. In the case of a nested IF formula, Copilot names each condition individually according to Microsoft, instead of just stating the final result. The explanation appears in the chat window at the edge of the screen, while the formula itself remains unchanged. If someone wants to know more, they can ask a follow-up question about a specific cell reference in the same window.
This is how a formula can be explained step by step:
- Mark the cell with the desired formula.
- Open the Copilot icon at the cell edge or in the Excel toolbar.
- Enter the sentence “Explain the formula in this cell” in the chat window.
- Read the explanation and compare it with your own table.
- If there are uncertainties, ask specifically about a single cell reference.
- Manually verify the result by spot-checking it before further use.
Copilot finds errors and suggests a corrected formula
If a cell shows an error message like #VALUE! or an obviously incorrect result, Copilot can also be asked for a correction. The tool then suggests a revised formula, for example for a percentage change or a search with VLOOKUP or XLOOKUP in a long list. Completely new formulas can also be described in plain language, such as “calculate the difference between cells A1 and B1 as a percentage.” Microsoft explicitly points out that AI-generated suggestions should be checked before being adopted.
Copilot in Excel now offers additional functions for recurring office tasks, such as pre-made workflows for month-end closing. Those who regularly work with the same tables benefit from both functions together.
Price, access, and requirements at a glance
The formula explanation is part of Microsoft 365 Copilot and is not a free extra. According to Microsoft, the business plan costs from €15.60 per user per month with annual payment, in addition to an existing Microsoft 365 Business subscription. The function runs in Excel for Microsoft 365, Excel 2024, Excel for Mac, Excel for iPad, and in the Excel web app – a separate Copilot account is not required, only an assigned license within the company. Depending on the Excel version and language setting, the Copilot icon may appear in a slightly different place in the toolbar; if it cannot be found, Copilot can alternatively be opened via the asterisk icon at the cell edge.
Since Copilot sends cell contents to Microsoft for processing, it is worth checking internal data protection rules before using it with customer or personnel data. According to Microsoft, the processing of EU customer data remains within the EU data boundary, and inputs are not used for training the AI models.
Copilot reliably explains what a formula calculates but does not replace one’s own understanding of the table. In very complex calculations nested across multiple sheets, the tool sometimes provides only a rough summary instead of a complete derivation. Those who blindly adopt formula suggestions without basic Excel knowledge of their own risk calculation errors that only become apparent during the next review – this is exactly where human oversight remains necessary.
