Top 10 Excel Interview Questions for Job Seekers

Microsoft Excel was released over thirty years ago, but it’s still one of the
most useful applications on the market. It owes its enduring popularity to a huge
number of features that allow users to analyze data quickly and easily. Since Excel’s
launch, many competitors have unsuccessfully tried to displace it as the tool of choice
for data analysis. Nevertheless, Excel still reigns supreme.

Because spreadsheets are so popular — and useful — many companies

conduct Excel interviews before extending job offers. This helps ensure that
job applicants are qualified — and comfortable using Excel on the job.

If you’ve got an upcoming Excel interview, you’re probably wondering what

sorts of questions you might get. Recruiters are generally vague on details, and
it can be scary to walk into a conversation like this one blind.

So, we’ve provided our list of the 10 most common Excel interview questions
so that you can get some practice in before you exam. With a little bit of
advance preparation, you’ll feel prepared and confident on interview day.

1. What are the most important data formats seen in Excel, and how are they
used?

Your Excel interview may start out with an easier question like this one. If you've
spent any time in Excel, you've almost certainly had a chance to experiment with
different data types, and will likely be familiar with some of the most frequently-
used:

• Numbers. Numbers are one of the most frequently-seen data types in Excel.
They can be formatted with a customized number of decimal places, and
appear with or without commas separating the thousands digits. Numbers can
be added, subtracted, divided, multiplied, or included in formulas and functions
that accept numerical inputs.
• Dates. Excel can display dates in any number of ways, including the classic
US-style MM/DD/YYYY format. Dates can be added or subtracted using
standard addition and subtraction, and can also be manipulated using a slew
of date-based functions. Interestingly, dates in Excel are technically also stores
as numbers, with each date represented as the number of days elapsed
since January 1, 1900. For example, the date May 6, 2019 is stored in Excel
as the number 42,129, because there are 42,129 days between January 1,
1900, and May 6, 2019.
 • Percentages. Numbers can also be formatted as percentages, which
multiplies the given number by 100 and adds a percentage sign at the end.
For example, the number 0.08 is equivalent to the percentage 8%.
• Strings. Text is stored in Excel in a format called a string. Strings of text can
contain standard characters such as letters, numbers, and punctuation; strings
can be manipulated via text-manipulation functions like MID and RIGHT.

2. What is the order of operations used when evaluating formulas in Excel?

Just like in standard mathematics, Excel uses an order of operations when evaluating
different operators within the formula bar. You'll almost surely recognize the
acronym PEMDAS — it's the order of operations taught in mathematics classes
worldwide, and it's also the order that Excel uses. PEMDAS stands for:

• Parentheses
• Exponents
• Multiplication
• Division
• Addition
• Subtraction
When evaluating formulas, Excel always processes operators in this order. If you find
yourself receiving an unexpected result from your mathematical formulas, double-
check to make sure that parentheses are used properly to achieve the results you
want.

3. What is a function in Excel?

If you're a frequent Excel user, functions are probably second nature to you. You've
used SUM, AVERAGE, and even VLOOKUP so many times that you don't even think
about what a function actually is when you're creating spreadsheets.

As such, this question may come as a surprise to you — especially because describing
what a function is can be a bit difficult if you never think about it.

Here's an easy way to do it: think of a function like a recipe. It's used to combine a
bunch of ingredients — which may not taste particularly good individually — into
something much more useful.

The name of the function is like the title of the recipe. It describes what the function
does, like take a SUM or an AVERAGE.
The arguments of the function describe what ingredients go into it. Individual
functions can take any number of arguments, from one to an infinite number. It all
depends on the function.

Finally, the output of the function is what comes out the other side: a useful quantity
that can show you important data, or be used as an input to other functions in your
spreadsheet.
4. In your opinion, what are a few of the most useful functions in Excel? How
do you use them?

This is a tricky question, because it asks you to use your subjective judgement rather
than answering objectively. As such, you'll have a wide range of latitude in your
response — and you should have a well thought-out reply prepared that
demonstrates both your proficiency with Excel and your wide range of past
experience using spreadsheets.

Here are a couple of our top recommendations for features, formulas, and functions
to discuss:

• INDEX MATCH. VLOOKUP and INDEX MATCH are two of Excel's most
important and commonly-used functions. As veteran Excel users know, they're
used to look up values from an external table, and are important parts of
automating your work with dynamic spreadsheets. One of the two is bound to
come up in any Excel interview, but if you get this question, we recommend
bringing up INDEX MATCH. It's a slightly more useful function, and also lacks
many of the disadvantages of VLOOKUP, like the inability to insert new rows
and columns into your sheets. If you go with this function, outline how you've
used it in the past to dynamically lookup values and populate columns of data
that would otherwise need to be manually copied and pasted.
• IF statements. IF statements are another staple of any Excel veteran's
arsenal. Bring them up to let your interviewer know that you've created
advanced spreadsheets that make decisions based on criteria calculated in
real-time.
• PivotTables. PivotTables are an extraordinarily useful tool, and if you're
applying for a job that requires intermediate or advanced Excel knowledge,
they're sure to be an important criteria used by your interviewer. You may
have used PivotTables for any number of things in the past, but be sure to
emphasize how useful they are when quick, accurate calculations are
necessary based on large sets of data with hundreds or thousands of rows.
5. What is the syntax of the VLOOKUP function? Are there any disadvantages
to using this function?

VLOOKUP is one of the most commonly-used functions in the business world, and if
you've got an Excel interview, you'll almost certainly be asked about it. Be sure you're
properly prepared for your interview by memorizing the syntax of VLOOKUP by heart:
=VLOOKUP(lookup_value, table_array, col_index_num, range_lookup)

VLOOKUP's arguments can be described as follows:

• lookup_value defines a value to look up within an external table of data.

• table_array defines a table of data in which to look up the lookup_value.
The lookup_value must appear within the first column of this table.
• col_index_num tells the function how many columns into the table_array to
look for a value to return.
• range_lookup is a TRUE / FALSE switch that tells the function whether to look
for an exact match, or an approximate match, to the specified lookup_value.
As for disadvantages — VLOOKUP does have one crucial one: since
the col_index_num is usually entered manually into the function, VLOOKUP can
break if columns of data are inserted into the table_array after the function is written.
This may not seem like a major disadvantage, but can cause hours of frustration over
broken formulas if you're not careful.

To fix the problems that sometimes occur when columns of data are inserted,
consider replacing your VLOOKUP formulas with INDEX MATCH, which contains
similar functionality with none of the disadvantages.
6. What is the difference between absolute and relative cell references? In
which situations would you use each?

As many Excel users know, one of the most magical features of Excel is the cell
reference. Cell references allow users to include the values of external cells in
formulas dynamically — rather than hard-coding particular values manually.

However, cell references can be confusing when copied and pasted to different
locations. By default, Excel uses relative cell references, which change dynamically
as they are copied and pasted around a sheet. For example, if a reference to cell A1 is
copied and pasted one row down and one column to the right, the new reference will
point to cell B2. This allows users to perform similar calculations on different ranges
of cells quickly and easily.

In contrast, absolute cell references do not change when they are copied and pasted
to other locations within a sheet. Absolute cell references can be used on either rows,
columns, or both at the same time, and are indicated using the $sign. For example,
if a reference to cell $A$1 is copied and pasted one row down and one column to the
right, the new reference will point to cell A1 — it won't change at all, because both
the row and column are locked. If a reference to cell $A1 is copied and pasted one
row down and one column to the right, the new reference will point to cell A2 — only
the row number will change, because the column letter is locked.
Here's a handy table that will show you what the $ sign means depending on where
you see it in a cell reference:

Format Meaning Explanation

$A$1 Row and column Cell reference will not change at all as cell is
locked copied and pasted.

$A1 Column locked Only row reference will change as cell is

copied and pasted.

A$1 Row locked Only column reference will change as cell is

copied and pasted.

A1 Nothing locked Both row and column will change as cell is

copied and pasted.
7. What is a PivotTable, and when would you use one? What are the key
PivotTable 'sections' into which users can drag columns?

As one of the most-used Excel features in business settings, PivotTables are sure to
come up during any in-depth Excel interview. Be sure you're prepared in advance
with a firm grasp of what exactly PivotTables are, and why they're useful in practice.

Simply put, a PivotTable is a tool used to summarize large quantities of data quickly
and easily. It can help you analyze a data set of tens, hundreds, or even thousands
of rows with minimal effort using a number of pre-defined functions —
like SUM, COUNT, and AVERAGE.

There are many use cases for PivotTables, but they're most handy when you need to
analyze a large data set quickly. If you've got high-level, one-off questions on a
massive data set — for example, "how many cookies did we sell in February of last
year", or "which salesperson closed the most deals this March", chances are a
PivotTable is the perfect way to answer them.

Each PivotTable is composed of a number of key sections, into which the columns of
a target data set can be bucketed:

• Report filter. This section allows us to filter our table by one or more criteria.
For example, we can only show data in our Pivot Table for the month of
January.
• Column labels. This section allows us to summarize data across columns,
placing data labels along the top of the screen.
• Row labels. This section allows us to summarize data across rows, placing
data labels along the side of the screen.
• Values. This section allows us to specify what we're summarizing — for
example, total sales or number of items ordered.
8. Do PivotTables have any drawbacks? How can they be solved?

Of course, no Excel feature is without its drawbacks, and there's a chance your
interviewer will dive deeper into your PivotTable knowledge by asking you to explore
some of their weaknesses. This will help the recruiter assess your in-depth experience
on one of Excel's most important features — after all, PivotTables can't be used for
everything!

If asked about the drawbacks of PivotTables, consider the following:

• Input data needs to be formatted properly. PivotTables can only be used

in specific situations in which the input data set appears in flat file format—
meaning that it's broken down to it's most granular level. If data is already
summarized on a table, PivotTables may not be the best way to analyze it.
• PivotTables need to be refreshed if input data changes. This can lead to
confusing and errors when using PivotTables as part of larger dashboards.
• PivotTables are easily modified, so it can be difficult to recreate your
calculations. There are many times during which you'll arrive at an answer
using PivotTables, then have a difficult time recreating that answer if a
supervisor asks to see your work in more detail. The flexibility of PivotTables
can be a double-edged sword!
As an alternative to PivotTables, consider using conditional summary functions
like SUMIFS and COUNTIFS, particularly when constructing dashboards. They can
produce similar results, but are less 'fluid' — making your results more predictable
and easier to track.
9. What are some best practices when creating complex models in Excel?

Excel can be used for simple calculations, but it's most effective when constructing
complex mathematical models that help predict outcomes, project financial results,
or track data over time. If you're interviewing for a highly analytical role, there's a
good chance your recruiter will ask about how you can use spreadsheets to
accomplish these more difficult tasks.

When talking through your answer, be sure to mention the following modeling best
practice, which help keep your spreadsheets clean, organized, and flexible:

• Create multiple tabs. Keeping different pieces of your model (for example,
inputs, outputs, and calculations) on separate tabs can help with model
organization, particularly if you're planning to hand your spreadsheet off to
someone who has never seen it before.
• Use dynamic inputs. When constructing a model in Excel, values should
never be hard-coded into cells — especially if they are flexible assumptions
that may change down the line. Always keep assumptions and inputs on their
own tab, and use cell references rather than hard-coded values to pull them
into your formulas.
 • Add a table of contents. Large models can be extraordinarily complex, and
adding a table of contents to the beginning can help keep things organized and
easy to use for yourself and your supervisor.
• Comment aggressively. You are the person who understands your models
the best, but other people in your organization will doubtless be using them,
too. So, be sure to over-comment and explain your calculations line-by-line so
that they are as easy to follow as possible for other users.
10. Talk about some of the spreadsheets you've made that you're most
proud of.

This is also a softer, more subjective question. It doesn't have to do with the features
of Excel itself — rather, your interviewer may ask it to get a sense for your past
experiences with spreadsheets and your enthusiasm for quantitative analysis.

Before walking into your interview, be sure that you have 2-3 examples of your prior
spreadsheet use prepared so that you can answer this question. The more excited
you are about these examples, the better; it's likely that your interviewer is also
trying to get a sense for the excitement and passion that you'd bring to the job if
hired.

Here are some examples of applications of Excel that you might want to talk about,
if applicable:

• Constructing dashboards in Excel to measure and track business metrics;

• Putting together cash flow or revenue projections over time;
• Using Excel as a project management dashboard to track progress across
multiple workstreams;
• Automating day-to-day tasks using spreadsheets with IF statements and other
conditional logic; or
• Performing back-of-the-envelope calculations to estimate sales volume in
various business scenarios.