Absolute cell references are useful when you don’t want the cell reference to change as you copy or drag formulas. This reference used when you have a fixed value that you need to use in the formula (such as tax rate, commission rate, percentage number of months, etc.)

absolute cell references don’t change when you copy or drag the formula to other cells.

For example, suppose you have the data set as shown below where you have to calculate the commission for each item’s total sales.

The commission is 10% and is listed in cell E2.

To get the commission amount for each item sale, use the following formula in cell E4 and copy for all cells:

=D4*$E$2

**Note** that there are two dollar signs ($) in the cell reference that has the commission – $E$2.

**What does the Dollar ($) sign do?**

A dollar symbol, when we add in front of the row and column number, makes it absolute it means absolute cell references don’t change when you copy or drag the formula to other cells.