Compare and contrast between Absolute Cell Reference and Relative Cell Reference with suitable example.

In Excel, a cell reference tells a formula which cell to use. How that reference behaves when copied determines whether it is relative or absolute.

Basis	Relative Reference	Absolute Reference
Symbol	Normal, e.g. A1	With $, e.g. $A$1
When copied	Changes automatically	Never changes, stays fixed
Use	When same pattern repeats row-wise	When one fixed value is used everywhere
Example	=B2*10 copied down becomes =B3*10	=B2*$D$1 copied down stays =B3*$D$1

Example for exam: Suppose D1 has VAT rate = 13% (0.13). Column B has prices. In C2 you write =B2*$D$1 to calculate VAT.

• B2 is relative — when you drag down to C3, it becomes B3, then B4, so each row uses its own price. This is what you want.
• $D$1 is absolute — when you drag down, it stays $D$1, so every row uses the same VAT rate. If you had written only D1, copying down would wrongly become D2, D3 (empty cells).

Mixed reference (bonus): $A1 locks column only, A$1 locks row only — useful in large tables and multiplication charts.

In short: Use relative when the cell should move with the formula; use absolute ($) when the cell should stay fixed like tax rate, commission or total.