How to Use Named Ranges in Excel for Supercharged Formulas

Excel’s named ranges feature allows you to assign meaningful names to cells and ranges of cells in your worksheets. Using named ranges can make your formulas easier to understand and manage. In this guide I’ll explain what named ranges are why they are so useful, and walk through how to create and use named ranges in Excel.

What is a Named Range?

A named range is simply a custom name assigned to a cell or group of cells in an Excel worksheet. For example, instead of referring to cells A1:A10 as that cryptic range address, you can name this range “Sales2023”.

When you name a range, you can reference it by that name in formulas and data validation drop downs. Named ranges act like absolute cell references that don’t change when copied (unlike regular relative/absolute references).

Named ranges make your formulas more intuitive and easier to remember. They also allow referring to ranges from different sheets more easily. Excel even has a Name Manager tool for centralized management of all named ranges in your workbook.

Benefits of Using Named Ranges

Applying descriptive names to key ranges in Excel provides the following helpful benefits:

• Readability – Named ranges like “SalesTotal” are far easier to understand in formulas than cryptic references like =SUM(A1:A10).

• Maintainability – You can update the cells in a named range without rewriting formulas that reference it.

• Portability – Named ranges remain valid when copied between worksheets or workbooks.

• Referencing ease – You can reference a named range from any worksheet without needing to specify the sheet name.

• Error reduction – Meaningful names help avoid referencing the wrong cells in formulas by mistake.

• Navigation – Named ranges make it easier to identify and select key regions of your worksheets.

Using named ranges is an Excel best practice that will save you time and headaches down the road. The small upfront effort pays big dividends.

How to Create a Named Range in Excel

Creating named ranges is quick and straightforward in Excel using the New Name dialog box. Here are the steps:

1. Select the cells you want to name.

2. Go to the Formulas tab and click Define Name in the Defined Names group.

   

3. In the New Name dialog: – Enter a descriptive name for the range in the Name field. – Verify the correct cells are shown in the Refers to field. – Choose the scope as Workbook or a specific sheet. – Add a comment to document the range if desired.

4. Click OK to create the named range.

That’s all there is to it! Now you can refer to that range by name in your formulas.

How to Use Named Ranges in Formulas

The real benefit of named ranges comes when using them in your Excel formulas and functions. Here are examples of how to reference a named range:“`
=SUM(Sales2022)

=Sales2021*1.05

=VLOOKUP(A1, Prices, 2, FALSE)

=IF(Expenses>Budget, “Over”, “Under”)“`

The named range is used just like you would normally reference a cell or range. Excel inserts the full reference behind the scenes.

Named ranges make formulas way more intuitive, readable and maintainable. No more decoding cryptic cell references!

Quick Ways to Create Named Ranges

Manually defining named ranges through the New Name dialog box works fine, but Excel provides even quicker ways to create them too:

• Name box – Select your range, type the desired name into the Name Box next to the formula bar, and press Enter.
• Create from Selection – Select your range and go to Formulas > Create from Selection to automatically generate named ranges based on headers.
• Selection pane – Use the Selection Pane under the Home tab to instantly name any selected ranges.

Use these shortcuts to name lots of ranges fast. The more named ranges in your workbook, the easier your formulas will be.

Getting IntelliSense for Named Ranges

One of the best aspects of named ranges is getting IntelliSense suggestions when building formulas. Start typing the name and Excel pops up options.

To enable this:

1. Go to File > Options > Formulas.

2. Check the box for Use table names in formulas.

Now when you reference a named range in a formula, IntelliSense will pop up for auto-complete. It even works across sheets!

Managing Named Ranges with the Name Manager

The Name Manager gives you a centralized way to view, edit, delete, and organize all the named ranges in your Excel workbook.

To open the Name Manager:

1. Go to the Formulas tab.

2. Click the Name Manager button in the Defined Names group.

In the Name Manager, you can:

• See all named ranges in a list with the sheet, range address, scope and comment.
• Search for a specific named range.
• Edit the name, range cells, scope or comment.
• Delete unnecessary named ranges.
• Sort named ranges alphabetically.

Any changes made in the Name Manager instantly update throughout the workbook.

Best Practices When Using Named Ranges

Here are some top tips to use named ranges effectively:

• Give named ranges clear, descriptive names like CostOfGoodsSold.
• Avoid spaces and weird characters in names that might cause errors.
• Scope named ranges to a specific sheet whenever possible.
• Use camelCase like quarterlyRevenue for multiword names.
• Name key tables, headers, columns and rows that are frequently referenced.
• Start adopting named ranges in new workbooks immediately.
• Audit existing formulas and progressively replace cell references with named ranges.

Following best practices will help you become a named ranges pro in no time!

Advanced Techniques for Power Users

Named ranges pack even more punch when you use some advanced features:

• Dynamic named ranges – Automatically expand named ranges based on formulas that find the last row/column. No manual updating!
• Named constants – Improve readability by naming static values used repeatedly in formulas, like tax rates.
• Multi-sheet naming – Prefix sheet names in range names to refer across sheets more easily.
• Workbook linking – Pull named ranges from other workbooks with the INDIRECT function.
• Named formulas – Define entire formulas by name for reuse in other formulas.

Learning these expert-level techniques can make your named range usage even more powerful.

When to Avoid Named Ranges

While named ranges have many benefits, they aren’t ideal for every situation. Some examples when you may want to stick with regular cell references:

• Ad-hoc analysis – One-off formulas that you’ll reuse or share rarely.
• Simple formulas – Short formulas applied to a few adjacent cells.
• Frequently changing ranges – Ranges that require updating named reference lists often.
• Massive workbooks – Thousands of named ranges can sometimes create performance issues.

Use your best judgment to determine when named ranges provide the most value. Focus on your most important or commonly used ranges first.

Key Takeaways

The savviest Excel users make frequent use of named ranges to simplify their formulas and make their spreadsheets easier to manage. Here are some key takeaways:

• Named ranges replace cell references with custom names for better readability.
• Descriptive named ranges enhance formula clarity and understanding.
• Named ranges are absolute, meaning they remain valid when copied.
• Create named ranges via the Name Manager, Name Box, or other shortcuts.
• Reference named ranges in formulas just like you would cells.
• Use the Name Manager to organize, edit and delete named ranges.

Adopting named ranges will supercharge your Excel skills and make your models more robust and maintainable. Consider me a convert – I can’t imagine using Excel now without them!