diff --git a/app/client/widgets/FormulaEditor.ts b/app/client/widgets/FormulaEditor.ts
index 4968a572..1f595168 100644
--- a/app/client/widgets/FormulaEditor.ts
+++ b/app/client/widgets/FormulaEditor.ts
@@ -175,7 +175,10 @@ export class FormulaEditor extends NewBaseEditor {
   }
 
   public getCellValue() {
-    return this._formulaEditor.getValue();
+    const value = this._formulaEditor.getValue();
+    // Strip the leading "=" sign, if any, in case users think it should start the formula body (as
+    // it does in Excel, and because the equal sign is also used for formulas in Grist UI).
+    return (value[0] === '=') ? value.slice(1) : value;
   }
 
   public getTextValue() {
diff --git a/sandbox/grist/codebuilder.py b/sandbox/grist/codebuilder.py
index bcd8086d..30224a0a 100644
--- a/sandbox/grist/codebuilder.py
+++ b/sandbox/grist/codebuilder.py
@@ -3,10 +3,11 @@ import contextlib
 import itertools
 import linecache
 import re
-import six
+import textwrap
 
 import astroid
 import asttokens
+import six
 
 import friendly_errors
 import textbuilder
@@ -41,6 +42,11 @@ def make_formula_body(formula, default_value, assoc_value=None):
   if isinstance(formula, six.binary_type):
     formula = formula.decode('utf8')
 
+  # Remove any common leading whitespace. In python, extra indent should not be an error, but
+  # it is in Grist because we parse the formula body before it gets inserted into a function (i.e.
+  # as if at module level).
+  formula = textwrap.dedent(formula)
+
   if not formula.strip():
     return textbuilder.Text('return ' + repr(default_value), assoc_value)
 
diff --git a/sandbox/grist/test_codebuilder.py b/sandbox/grist/test_codebuilder.py
index 2ce55fca..27c6422d 100644
--- a/sandbox/grist/test_codebuilder.py
+++ b/sandbox/grist/test_codebuilder.py
@@ -1,15 +1,14 @@
 # -*- coding: utf-8 -*-
-import unittest
-
 import codebuilder
 import six
+import test_engine
 
 unicode_prefix = 'u' if six.PY2 else ''
 
 def make_body(formula, default=None):
   return codebuilder.make_formula_body(formula, default).get_text()
 
-class TestCodeBuilder(unittest.TestCase):
+class TestCodeBuilder(test_engine.EngineTestCase):
   def test_make_formula_body(self):
     # Test simple usage.
     self.assertEqual(make_body(""), "return None")
@@ -239,3 +238,19 @@ return x or y
 
     # Check that missing arguments is OK
     self.assertEqual(make_body("ISERR()"), "return ISERR()")
+
+
+  def test_leading_whitespace(self):
+    self.assertEqual(make_body(" $A + 1"), "return rec.A + 1")
+
+    self.assertEqual(make_body("""
+  if $A:
+    return $A
+
+  $B
+"""), """
+if rec.A:
+  return rec.A
+
+return rec.B
+""")
diff --git a/sandbox/grist/test_formula_error.py b/sandbox/grist/test_formula_error.py
index 206c7505..983dbb4b 100644
--- a/sandbox/grist/test_formula_error.py
+++ b/sandbox/grist/test_formula_error.py
@@ -25,6 +25,13 @@ else:
 """
   if sum(3, 5) > 6:
     return 6
+return 0
+"""
+
+  other_err = \
+"""
+  if sum(3, 5) > 6:
+    return 6
 """
 
   sample = testutil.parse_test_sample({
@@ -34,7 +41,7 @@ else:
         [12, "built_in_formula", "Text", True, "max(5)", "", ""],
         [13, "syntax_err", "Text", True, syntax_err, "", ""],
         [14, "indent_err", "Text", True, indent_err, "", ""],
-        [15, "other_err", "Text", True, textwrap.dedent(indent_err), "", ""],
+        [15, "other_err", "Text", True, other_err, "", ""],
         [15, "custom_err", "Text", True, "raise Exception('hello'); return 1", "", ""],
       ]]
     ],
diff --git a/sandbox/grist/useractions.py b/sandbox/grist/useractions.py
index 4f387fd6..00c94fbc 100644
--- a/sandbox/grist/useractions.py
+++ b/sandbox/grist/useractions.py
@@ -16,7 +16,7 @@ import actions
 import column
 import sort_specs
 import identifiers
-from objtypes import strict_equal, encode_object, decode_object
+from objtypes import strict_equal, encode_object
 import schema
 from schema import RecalcWhen
 import summary
diff --git a/test/nbrowser/gristUtils.ts b/test/nbrowser/gristUtils.ts
index a9babd48..a1f060bb 100644
--- a/test/nbrowser/gristUtils.ts
+++ b/test/nbrowser/gristUtils.ts
@@ -614,6 +614,9 @@ export async function enterCell(...keys: string[]) {
 
 /**
  * Enter a formula into the currently selected cell.
+ *
+ * You can insert newlines by embedding `${Key.chord(Key.SHIFT, Key.ENTER)}` into the formula
+ * text. Note that ACE editor adds some indentation automatically.
  */
 export async function enterFormula(formula: string) {
   await driver.sendKeys('=');
@@ -621,7 +624,7 @@ export async function enterFormula(formula: string) {
   if (await driver.find('.test-editor-tooltip-convert').isPresent()) {
     await driver.find('.test-editor-tooltip-convert').click();
   }
-  await driver.sendKeys(formula, Key.ENTER);
+  await sendKeys(formula, Key.ENTER);
   await waitForServer();
 }