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to avoid 5000 characters in formula fields, any temp variables can we use ?


No .Its not an efficient way.If you add any temp variables,it is also calculated to your characters limit.


Formula field character size calculated by all refering fields size.


for ex: Temp_formula_Field1 compiled is 100 (for example only i put 100)


Temp2_Formula_Field2 = 80 + Temp_formula_Field1 



Now the compiled size of Temp2_Formula_Field2 is 104. 



To avoid  5000 characters in formula follow simple tricks like instead of using "IF" for multiple check use CASE.