Excel LAMBDA Explained — Create Custom Functions Without VBA

Published: 10 July 2026
on channel: Tiger Spreadsheet Solutions
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The Excel LAMBDA function is a great way to get custom Excel functions without Excel VBA. In this beginner tutorial, I walk you through the unusual way I build Excel's LAMBDA formula, step-by-step.

00:00 EXCEL LAMBDA FUNCTION
Tired of long Excel formulae? Unable, or unwilling, to use VBA to create a custom function? Excel's LAMBDA function could be your answer.

06:08 HOW NOT BUILD THE LAMBDA FUNCTION
Many newcomers to this formula make a critical mistake - and I made it too. Formula-building in the Name Manager is close to impossible. Use an inverted comma to make the formula display as text, then make the edits 'manually' in the spreadsheet, before copying to the Name Manager.

01:30 HOW I BUILD THE LAMBDA FUNCTION
Here I show you how to start the LAMBDA function - the right way.

01:55 ADD PARAMETERS TO THE LAMBDA FUNCTION
Parameters here are much like variables in Excel VBA. Use informative names (eg. 'Games') rather than algebra, and let the formula do the heavy lifting.

02:50 BUILD OUT THE LAMBDA FORMULA
The next step is to add the formula name and add brackets. We are now ready to copy / paste to Excel's Name Manager without too much stress.

03:38 BUILD LAMBDA IN THE NAME MANAGER
The hard work is done but still translating the formula to a defined name can be tricky. I share my tips tricks for navigating the Name Manager in this section.

04:28 INSERT LAMBDA TO THE SPREADSHEET
With the defined name set up, we can now access our custom function in the formula menu alongside the usual Excel functions. Cool! Now it's simply a case of pointing Excel to the cells that feed the LAMBDA parameters we created earlier.

05:20 TESTING LAMBDA
I test LAMBDA as I do anything else in Excel - by doing the same thing more than one way. Get the same result and build your confidence.

06:11 LAMBDA FORMULA - PROS AND CONS
This is a great example and was a definite punch-the-air moment for me. So, should you use LAMBDA all the time? In this section, I explain how I only use the function selectively because it makes tracing and debugging difficult, particularly in collaborative working situations.

I would love to hear how you get on with LAMBDA - I will get back to you in the YouTube comments!

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