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References behave differently when copied and filled into other cells, and here
are the differences between relative and absolute references:
- Relative references change when a formula is copied to another cell.
- Absolute references remain constant regardless of the copy location.
- To distinguish between relative and absolute cell references, the dollar sign ($) is
used before the column letter and also before the row number in an absolute cell
reference.
- Excel can convert a relative cell reference to an absolute one by clicking the F4 key
when the insertion point is active in the formula bar.

To calculate the salary in the following table for employees using the following
formula:

Salary = Number of working hours for the employee × Hourly rate

Figure 137: Absolute Reference

The hourly rate is fixed and does not change for all employees, so it is entered in
one cell, D2. Therefore, before executing the formula, the absolute cell reference D2
must be changed to relative, making it $D$2, using the F4 key.

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