diff --git a/docs/src/formula.md b/docs/src/formula.md
index 34460f4a..1633fcc3 100644
--- a/docs/src/formula.md
+++ b/docs/src/formula.md
@@ -72,6 +72,54 @@ julia> Formula(StatsModels.Terms(@formula(y ~ 1 + (a+b) * c)))
 Formula: y ~ 1 + a + b + c + a & c + b & c
 ```
 
+### Constructing a formula programmatically
+
+Because a `Formula` is created at compile time with the `@formula` macro,
+creating one programmatically means dipping into Julia's
+[metaprogramming](https://docs.julialang.org/en/latest/manual/metaprogramming/)
+facilities.
+
+Let's say you have a variable `lhs`:
+
+```jldoctest
+julia> lhs = :y
+:y
+```
+
+and you want to create a formula whose left-hand side is the _value_ of `lhs`,
+as in
+
+```jldoctest
+julia> @formula(y ~ 1 + x)
+Formula: y ~ 1 + x
+```
+
+Simply using the Julia interpolation syntax `@formula($lhs ~ 1 + x)` won't work,
+because `@formula` runs _at compile time_, before anything about the value of
+`lhs` is known.  Instead, you need to construct and evaluate the _correct call_
+to `@formula`.  The most concise way to do this is with `@eval`:
+
+```jldoctest
+julia> @eval @formula($lhs ~ 1 + x)
+Formula: y ~ 1 + x
+```
+
+The `@eval` macro does two very different things in a single, convenient step:
+
+1. Generate a _quoted expression_ using `$`-interpolation to insert the run-time
+   value of `lhs` into the call to the `@formula` macro.
+2. Evaluate this expression using `eval`.
+
+An equivalent but slightly more verbose way of doing the same thing is:
+
+```jldoctest
+julia> formula_ex = :(@formula($lhs ~ 1 + x))
+:(@formula y ~ 1 + x)
+
+julia> eval(formula_ex)
+Formula: y ~ 1 + x
+```
+
 ### Technical details
 
 You may be wondering why formulas in Julia require a macro, while in R they
diff --git a/src/formula.jl b/src/formula.jl
index adf7935e..202e06b4 100644
--- a/src/formula.jl
+++ b/src/formula.jl
@@ -17,6 +17,9 @@ is_call(::Any) = false
 is_call(::Any, ::Any) = false
 check_call(ex) = is_call(ex) || throw(ArgumentError("non-call expression encountered: $ex"))
 
+catch_dollar(ex::Expr) =
+    Meta.isexpr(ex, :$) && throw(ArgumentError("interpolation with \$ not supported in @formula.  Use @eval @formula(...) instead."))
+
 mutable struct Formula
     ex_orig::Expr
     ex::Expr
@@ -252,6 +255,7 @@ function parse!(i::Integer, rewrites)
 end
 function parse!(ex::Expr, rewrites::Vector)
     @debug "parsing $ex"
+    catch_dollar(ex)
     check_call(ex)
     # iterate over children, checking for special rules
     child_idx = 2