How to Combine Subtraction and Multiplication in Excel｜A Complete Guide to Formula Order and Practical Applications

When working with business data, budgets, or product calculations in Excel, you often need to combine subtraction and multiplication in a single formula — for example, calculating discounted prices, profit margins, or inventory adjustments.

However, many users get confused when formulas like =A2 - B2 * C2 produce unexpected results. The issue usually lies in Excel’s calculation order — how Excel decides which operation (subtraction or multiplication) to perform first.

In this article, we’ll explain how to correctly combine subtraction and multiplication in Excel, how operator precedence works, and how to apply these formulas effectively in real-world business situations.

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✅ Understanding the Order of Operations in Excel

Before diving into complex formulas, it’s crucial to understand how Excel processes mathematical operations.

・Excel’s Operator Precedence

Excel follows a specific order when calculating formulas, often called “PEMDAS” —
Parentheses → Exponents → Multiplication → Division → Addition → Subtraction.

That means multiplication is always performed before subtraction, unless you use parentheses to change the order.

For example:
=10 - 2 * 3
Excel calculates 2 * 3 first (which equals 6), then subtracts from 10.
→ Result: 4

If you want to subtract first, you must use parentheses:
=(10 - 2) * 3
→ Result: 24

・Why This Matters

Misunderstanding formula order can lead to incorrect data analysis — particularly in accounting, cost analysis, or price calculations where accuracy is essential.

Knowing when to use parentheses ensures your formula behaves exactly as you intend.

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✅ How to Combine Subtraction and Multiplication in Excel

Let’s go step by step to see how subtraction and multiplication can be combined correctly in a formula.

・Step 1: Prepare Your Data

Imagine you have the following dataset:

A	B	C
Product	Quantity	Unit Price
A	5	200
B	3	150
C	2	300

You want to calculate the remaining budget after purchasing these products from a fixed amount (e.g., $2000).

・Step 2: Write the Formula

In cell D2, type the following:
=2000 - (B2 * C2)

Here’s what’s happening:

• B2 * C2 → calculates total cost for the item.
• 2000 - (...) → subtracts that cost from the total budget.

Press Enter, and Excel will give you the remaining budget after buying product A.
Then use AutoFill to copy the formula for other rows.

・Step 3: Apply Parentheses Correctly

If you remove the parentheses — =2000 - B2 * C2 — Excel will still multiply first (since multiplication takes priority), so you get the same result.

But if your formula includes multiple operations, parentheses become critical.
For example:
=(A2 - B2) * C2
is completely different from
=A2 - (B2 * C2)

We’ll explore the difference next.

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✅ Comparing Formula Variations and Their Results

Understanding how parentheses affect results is key to creating accurate formulas.

・Example 1: Subtract First, Then Multiply

Formula:
=(A2 - B2) * C2

Suppose A2 = 100, B2 = 20, C2 = 3
Excel calculates:

1. (100 – 20) = 80
2. 80 × 3 = 240
   → Result: 240

・Example 2: Multiply First, Then Subtract

Formula:
=A2 - (B2 * C2)

With the same values:

1. (B2 × C2) = 60
2. 100 – 60 = 40
   → Result: 40

As you can see, changing the parentheses completely alters the meaning — and the result.

That’s why being aware of formula order is one of the most important Excel skills for accurate business analysis.

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✅ Practical Use Cases for Combined Subtraction and Multiplication

Let’s look at common real-world scenarios where you’ll use subtraction and multiplication together.

・1. Calculating Discounted Prices

If you’re applying a discount rate to a product price, the formula might look like this:
=A2 - (A2 * B2)

Where:

• A2 = Original price
• B2 = Discount rate (e.g., 0.2 for 20%)

Example:
=1000 - (1000 * 0.2) → 1000 – 200 = 800

You can also rewrite this more compactly as:
=A2 * (1 - B2)
Both formulas yield the same result, but the second one is cleaner and more scalable.

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・2. Calculating Net Profit After Tax or Fees

If you have a total revenue and need to deduct a percentage-based tax or fee:
=A2 - (A2 * B2)

Example:
Revenue (A2) = 5000, Tax Rate (B2) = 0.1
→ 5000 – (5000 × 0.1) = 4500

This is especially useful for financial statements, commission calculations, and invoice templates.

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・3. Inventory Adjustments After Multiplying Quantities

In inventory tracking, you may need to subtract used stock based on the number of sold units and the consumption rate:
=A2 - (B2 * C2)

Where:

• A2 = Initial stock
• B2 = Quantity sold
• C2 = Units used per sale

Example:
100 – (10 × 2) = 80 units remaining

This allows you to automatically track remaining quantities and restock efficiently.

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・4. Budget Difference After Expense Multipliers

When expenses depend on variable factors (like hours worked or resource units), combine both operations:
=TotalBudget - (HourlyRate * HoursWorked)

This formula dynamically updates remaining budget whenever hours or rates change, providing a live view of cost performance.

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✅ Advanced Techniques with Combined Formulas

Once you’re comfortable with basic subtraction-multiplication combinations, you can integrate them into more powerful formulas.

・Using Cell References Across Sheets

To calculate across sheets (for example, comparing “January” and “February” data):
=January!B2 - (February!B2 * 0.1)

This calculates January’s value minus 10% of February’s — useful for comparative reporting and trend analysis.

・Combining with SUM or AVERAGE

If you want to subtract the product of two values from a sum:
=SUM(B2:B5) - (C2 * D2)

Or, to multiply after subtracting an average:
=(A2 - AVERAGE(B2:B5)) * C2

Such combinations are often used in data modeling or KPI dashboards to adjust targets based on weighted or average performance.

・Handling Negative Results

If you want to prevent negative outcomes from appearing, you can use an IF condition:
=IF(A2 - (B2 * C2) < 0, 0, A2 - (B2 * C2))

This ensures results never drop below zero, which is useful for quantity or balance-related calculations.

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✅ Tips to Avoid Mistakes

Even experienced users make errors when combining operations. Here’s how to avoid them.

・Always Check Parentheses

Parentheses define order. Without them, Excel assumes multiplication first.
Double-check your parentheses especially in nested formulas.

・Use Clear Formula Structure

Avoid long, hard-to-read formulas like:
=A2 - B2 * C2 + D2 * E2 - F2

Instead, break them into smaller helper columns or add parentheses for clarity:
=(A2 - (B2 * C2)) + (D2 * E2) - F2

・Watch Out for Percentage Formatting

If your percentage cell (like B2 = 20%) is formatted as text, Excel may miscalculate.
Ensure percentage columns are correctly formatted as “Percentage” type.

・Use IFERROR for Cleaner Results

If a formula references empty cells or text, it might show #VALUE!.
Wrap it in IFERROR to avoid messy output:
=IFERROR(A2 - (B2 * C2), "")

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✅ Summary: Mastering Subtraction and Multiplication in Excel

• Excel follows the PEMDAS order: multiplication before subtraction.
• Use parentheses to control operation sequence.
• Combine subtraction and multiplication for discounts, budgets, and inventory tracking.
• Use formulas like =A2 - (B2 * C2) or =A2 * (1 - B2) for practical, error-free results.
• Apply advanced techniques like cross-sheet references and conditional formulas for professional-grade spreadsheets.

By mastering how subtraction and multiplication interact in Excel, you’ll gain precision, control, and efficiency in your calculations.

With just a few well-placed parentheses, your formulas will not only produce accurate results but also save hours of manual corrections — helping you become an Excel power user ready for real-world business scenarios.