Excel 365 LAMBDA Function Explained: Make Your Own Formulas Without VBA

The LAMBDA function in Excel 365 is a powerful and advanced feature that allows you to create custom functions without VBA or macros. It’s like writing your own Excel formula and saving it as a function you can reuse across the workbook.

Let’s walk through it step by step with simple explanations and examples.

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🧠 What is the LAMBDA Function in Excel?

The LAMBDA function allows you to:

• Define custom functions using Excel formulas
• Reuse logic without copying complex formulas
• Replace repetitive expressions
• Avoid writing VBA or using Add-ins

🔧 Syntax:

=LAMBDA(parameter1, parameter2, ..., calculation)

You define inputs (parameters) and use them in the calculation.

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✅ How to Use the LAMBDA Function

🔸 Step 1: Create a Simple LAMBDA Formula

Example: Create a LAMBDA to square a number.

=LAMBDA(x, x^2)(5)

• Here, x is the input.
• x^2 is the formula.
• (5) is the value passed to the function.

✅ Output: 25

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🔸 Step 2: Create a LAMBDA Function for Reuse

You can also name your custom LAMBDA function for repeated use.

🧭 Steps:

1. Go to Formulas > Name Manager
2. Click New
3. In Name, type: SquareNum
4. In Refers to, enter: =LAMBDA(x, x^2)
5. Click OK.

Now you can use your new function like any built-in Excel function:

=SquareNum(6)

✅ Output: 36

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📘 Real-Life Examples of LAMBDA

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🔸 Example 1: Calculate Profit Margin

=LAMBDA(cost, price, (price - cost)/price)

Use it as:

=LAMBDA(cost, price, (price - cost)/price)(100, 150)

✅ Output: 0.333 (or 33.3%)

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🔸 Example 2: Fahrenheit to Celsius Converter

=LAMBDA(f, (f - 32) * 5/9)(98.6)

✅ Output: 37°C

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🔸 Example 3: Named Reusable LAMBDA for Area of a Circle

1. Go to Name Manager > New
2. Name: CircleArea
3. Refers to:

=LAMBDA(r, PI()*r^2)

Use it in a cell:

=CircleArea(5)

✅ Output: 78.54

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🛑 Important Notes

• LAMBDA must end with a calculation using defined parameters.
• You can nest LAMBDAs for advanced logic.
• Works only in Excel 365 (and Excel for the web).
• Doesn’t run without input — i.e., you must “call” it at least once for testing.

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