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To replace text in Excel, use the formula `=REPLACE(c3, start_num, num_chars, "new_text")`. Replace `c3` with your target cell reference. The `start_num` is the position from the left where the replacement begins (e.g., 3 for the third character). Specify `num_chars` for how many characters to replace. After placing the new text in quotation marks, close the parentheses. Press Enter to apply the formula. To extend it to other cells, use the autofill function.