Absolute references ($) in Google Sheets - Cell-by-Cell Formula Trace

Sample Data

This table shows prices and quantities of items. Cell C2 contains the tax rate (10%). We want to calculate total cost including tax for each row in column D.

Cell	Value
A1	Price
B1	Quantity
C1	Tax Rate
D1	Total Cost
A2	10
B2	2
C2	0.1
A3	15
B3	3
C3
A4	20
B4	1
C4

Formula Trace

=A2*B2*(1+$C$2)

Step 1: A2

Step 2: B2

Step 3: A2*B2

Step 4: $C$2

Step 5: 1 + $C$2

Step 6: A2*B2*(1+$C$2)

Cell Reference Map

    A     B     C     D
1 |Price|Quantity|Tax  |Total|
2 | 10  |   2   | 0.1 |  ?  |
3 | 15  |   3   |     |  ?  |
4 | 20  |   1   |     |  ?  |

Formula in D2: =A2*B2*(1+$C$2)
$C$2 is absolute, always points to C2 (tax rate 0.1)
A2 and B2 change when copied down

The formula in D2 uses A2 and B2 which change when copied down. The $C$2 is absolute, so it always points to the tax rate in C2.

Result

    A     B     C     D
1 |Price|Quantity|Tax  |Total|
2 | 10  |   2   | 0.1 |  22 |
3 | 15  |   3   |     |  49.5|
4 | 20  |   1   |     |  22 |

In D3 formula is =A3*B3*(1+$C$2) = 15*3*1.1 = 49.5
In D4 formula is =A4*B4*(1+$C$2) = 20*1*1.1 = 22

The total cost in column D includes tax. The absolute reference $C$2 keeps the tax rate fixed when copying the formula down.

Sheet Trace Quiz - 3 Questions

What does the $ symbol do in the reference $C$2?

A It multiplies the value in C2 by 100

B It makes the reference relative so it changes when copied

C It locks the reference so it always points to cell C2

D It deletes the value in C2

Key Result

Absolute references with $ lock the column and/or row so they do not change when copying formulas.