Microsoft is making it easier to understand formulas in Excel

Microsoft Excel receives new features on a regular basis, which is important considering how widely it is utilized for various use cases, including data crunching, visualizations, and organization. A few weeks ago, we learned that the spreadsheet tool received auto refresh capabilities for PivotTables, and now it has netted another feature aimed at improving accessibility.

Basically, Microsoft has integrated the Explain Formula capability powered by Copilot directly into the grid. It does exactly what it says on the tin as you can now see descriptions for complex formulas inline to a cell, without opening a dedicated chat pane or anything similarly distracting. What makes this feature truly powerful is that it offers contextual explanations that are grounded in your current workbook and workflow, rather than providing generic information from the web.

As can can't be seen in the GIF above, you can trigger Explain Formula by clicking on a cell with a valid formula, clicking on the Copilot icon that appears next to it, and selecting the Explain this formula option from the drop-down. Copilot will then show you a step-by-step breakdown of the formula along with an overall summary based on the current context. It is important to note that while the default behavior will show you inline explanations as evident in the GIF above, the dedicated Copilot chat pane will be prioritized if that is open already.

Microsoft has boasted that Copilot can explain any formula, regardless of its simplicity or complexity level. For now, it is being gradually rolled out to Excel for Windows and Excel for the web customers, so don't fret if you haven't received it yet. The Redmond tech firm has encouraged customers to utilize the thumbs-up and thumbs-down icons at the bottom of each Copilot interaction - such as Explain Formula - to indicate if the AI-powered assistance was useful.

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Posted Tuesday 12 August 2025 at 4:53 am AEST (my time).

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