What is an absolute reference in a formula?

An absolute reference in a formula is defined as a reference that remains constant when copied to other cells. This means that no matter where the formula is pasted or copied, the absolute reference will always point to the same cell or range of cells.

In practical terms, an absolute reference is created by placing a dollar sign ($) before the column letter and row number (for example, $A$1). This ensures that if you copy the formula containing this reference to another cell, it will still refer back to cell A1, rather than adjusting to reflect the new position of the formula as would be the case with relative references.

This feature is especially useful in scenarios where you want to maintain a constant reference point in calculations, such as when using fixed values in a formula across multiple rows or columns. This clarity helps in data analysis and ensures that specific references in your computations remain intact regardless of how formulas are manipulated within the workbook.