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This tutorial demonstrates how to create a formula on an envelope or template using text boxes. Formulas can be used with text box, drop-down, and date signed fields. Text boxes can only contain numbers and dates. Data labels are important for creating the formula. The process involves naming text boxes, completing data labels, inputting the formula, clicking setup, selecting fields and operations, and specifying decimal places. The formula can be saved without needing to add an equals sign.