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How to Use the LAMBDA Function in Excel (Microsoft 365): The Complete Step-by-Step Guide

Introduction to LAMBDA function in Excel

Excel’s LAMBDA function is a powerful new addition that brings the flexibility of creating custom functions without writing VBA code. It allows users to write and reuse logic in a more elegant, dynamic, and maintainable way.

What is the LAMBDA Function in Excel?

LAMBDA Function in Excel

The LAMBDA function in Excel enables users to create custom, reusable formulas that behave like native functions. Once defined, these formulas can be used repeatedly, improving productivity and spreadsheet maintainability.

History and Compatibility

Microsoft introduced the LAMBDA function in Excel for Microsoft 365 as part of its push for dynamic arrays and formula-driven development.

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Available in:

  • Microsoft Excel 365 (desktop and web)
  • Not available in Excel 2019 or earlier versions

Syntax and Parameters

=LAMBDA(parameter1, parameter2, ..., calculation)

Parameters:

  • parameter1, parameter2, …: Optional arguments (placeholders) that your function will use.
  • calculation: The expression or logic using the parameters.
Excel LAMBDA function syntax structure

Ways to Create and Call a LAMBDA

There are four major ways to use and call the LAMBDA function in Excel.

1. Inline LAMBDA (Temporary, within a cell)

=LAMBDA(x, x+10)(5)  
// Output: 15

You define and call immediately in the same formula.

2. Saved Function via Name Manager

  1. Go to Formulas > Name Manager > New
  2. Define a name (e.g., AddTen)
  3. Use this formula:
    =LAMBDA(x, x+10)
  4. Call it in cell:
    =AddTen(5)
Excel LAMBDA defined in Name Manager

3. Named Function with Helper Functions (e.g., IF, LET)

This lets you create modular formulas with enhanced logic:

=LAMBDA(a, b, IF(b=0, "Divide by zero", a/b))(10, 2)

4. Named Function with Recursive Calls (via _xlfn.LAMBDA)

Used in advanced cases, like creating functions that call themselves recursively (e.g., for factorial, Fibonacci).

Real-Life Use Cases with Data

Use Case 1: Add 10 to Any Number

=LAMBDA(x, x + 10)(5) → Result: 15

Use Case 2: Check If Number is Even or Odd

=LAMBDA(n, IF(MOD(n,2)=0, "Even", "Odd"))(6)

Use Case 3: Calculate Area of Circle

=LAMBDA(r, PI() * r^2)(7)

Use Case 4: Convert Celsius to Fahrenheit

=LAMBDA(c, (c * 9/5) + 32)(25)

Use Case 5: Combine First and Last Name

=LAMBDA(f, l, f & " " & l)("Dilip", "Kumar")

Use Case 6: Calculate Monthly EMI

=LAMBDA(p, r, n, (p*r*((1+r)^n))/(((1+r)^n)-1))(100000, 0.01, 12)

Use Case 7: Grade Students Based on Marks

=LAMBDA(m, IF(m>=90, "A", IF(m>=80, "B", IF(m>=70, "C", "D"))))(85)

Use Case 8: Convert Text to Proper Case

=LAMBDA(text, UPPER(LEFT(text,1)) & LOWER(MID(text,2,LEN(text))))("dilip")

Use Case 9: Calculate Profit Margin

=LAMBDA(cost, revenue, (revenue-cost)/revenue)(50, 80)

Use Case 10: Check Leap Year

=LAMBDA(y, IF(OR(MOD(y,400)=0, AND(MOD(y,4)=0, MOD(y,100)<>0)), "Leap", "Not Leap"))(2024)

Practice Questions with Data

Input 1Input 2Task
5Add 10 to this number
7Check if this number is even/odd
25Convert Celsius to Fahrenheit
DilipTiwariCombine first and last names
2023Check if it’s a leap year

Try using the above inputs to practice creating your own LAMBDA functions.

Conclusion

The LAMBDA function in Excel is a major leap forward in formula creation and maintenance. It enables users to build powerful, reusable logic directly inside Excel—eliminating the need for VBA or repetitive formulas.

Use it for everything from simple math to complex business logic automation. With practice, it can completely transform how you think about Excel functions.

FAQ on LAMBDA Function in Excel

What is the LAMBDA function in Excel?

The LAMBDA function allows users to create custom, reusable formulas without using VBA.

Can I call a LAMBDA function from the Name Manager?

Yes, you can define a LAMBDA in Name Manager and call it by its name in any cell.

Is the LAMBDA function available in Excel 2016?

No, it’s only available in Excel for Microsoft 365.

How do I call a LAMBDA inline?

You define and invoke it in the same formula, like =LAMBDA(x, x+5)(10).

Can LAMBDA replace VBA?

For many use cases—yes. LAMBDA can handle logic, recursion, and reusability without code.

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