What is the primary difference between relative and absolute cell references?

The primary difference between relative and absolute cell references lies in how they behave when copied to other locations in a spreadsheet. Relative references are designed to adjust automatically based on their position. For instance, if a formula containing a relative reference is copied from one cell to another, Excel will modify the reference to maintain the same relative position. This allows for efficient formula creation across multiple cells without manually adjusting references.

In contrast, absolute references remain constant regardless of where the formula is moved or copied. When a formula with an absolute reference is copied, it will always refer to the exact same cell, ensuring that specific data is consistently accessed.

Understanding the distinction between these two types of references is crucial for effective spreadsheet modeling, as it impacts how formulas calculate and produce results, particularly in large data sets or complex spreadsheets.