diff --git a/app/src/main/java/org/solovyev/android/calculator/Editor.java b/app/src/main/java/org/solovyev/android/calculator/Editor.java
index cbef5713..dd1667f1 100644
--- a/app/src/main/java/org/solovyev/android/calculator/Editor.java
+++ b/app/src/main/java/org/solovyev/android/calculator/Editor.java
@@ -98,6 +98,86 @@ protected void onPostExecute(@Nonnull EditorState state) {
         }
     }
 
+    /**
+     * Splits selected text into parts left, mid (selected) and right of selection.
+     */
+    private class SplitText {
+        public int selectionStart = 0;
+        public int selectionEnd = 0;
+        public int selectionLength = 0;
+        public int insertionPos = 0;
+        public boolean textSelected = false;
+        public String textLeft = "";
+        public String textMid = "";
+        public String textRight = "";
+        public String text = "";
+
+        /**
+         * SplitText constructor.
+         *
+         * @param text the content of the calculator's text input field.
+         * @param cursorPos the current position of the text cursor in the input field.
+         */
+        public SplitText(String text, int cursorPos) {
+            this.text = text;
+            selectionStart = view.getSelectionStart();
+            selectionEnd = view.getSelectionEnd();
+            selectionLength = selectionEnd - selectionStart;
+            textSelected = selectionLength != 0;
+            insertionPos = textSelected ?
+                      clamp(selectionStart, text)
+                    : clamp(cursorPos, text);
+            textLeft = text.substring(0, insertionPos);
+            textMid = text.substring(selectionStart, selectionEnd);
+            textRight = text.substring(insertionPos + selectionLength, text.length());
+        }
+
+        /**
+         * Retrieves the middle part (=selection) of the split text. 
+         *
+         * @param deleteSelection specifies whether the selection is to be deleted.
+         * @return the selected text or an empty string depending on deletion context.
+         */
+        public String getTextMid(boolean deleteSelection) {
+            return deleteSelection ? "" : this.textMid;
+        }
+
+        /**
+         * Retrieves the text left of the selection/cursor pos when deleting.
+         *
+         * <p>The left part of the text upon deletion depends on whether text
+         * is selected or not. For selected text, the left part is simply from
+         * the beginning of the text input to the beginning of the selection.
+         * <p>For no text selected, the deletion is a one-character deletion,
+         * so returns the string from the beginning of the text input to one
+         * character left of the cursor position.
+         * <p>A special case is given when the cursor position is to the right of  
+         * a decimal grouping separator (e.g. a whitespace) in which case the
+         * grouping separator plus the digit left to it has to be deleted
+         * (because deleting only the grouping separator would restore it
+         * immediately after deletion). Thus, the string from the beginning
+         * to the original cursor position up until two characters left of it
+         * is returned.
+         * @return the left part of the text after a deletion operation.
+         */
+        public String getDelTextLeft() {
+            MathType type = MathType.getType(text, insertionPos - 1, false, engine).type;
+            return this.textSelected ?
+                   this.textLeft
+                 : type == MathType.grouping_separator ?
+                   this.textLeft.substring(0, Math.max(this.textLeft.length()-2, 0))
+                 : this.textLeft.substring(0, Math.max(this.textLeft.length()-1, 0));
+        }
+
+        /**
+         * Returns the cursor position after a deletion.
+         */
+        public int getDelPos() {
+            return this.getDelTextLeft().length();
+        }
+    }
+
+
     @VisibleForTesting
     @Nullable
     EditorTextProcessor textProcessor;
@@ -238,22 +318,25 @@ public EditorState moveCursorRight() {
         return newSelectionViewState(state.selection + 1);
     }
 
+    /**
+     * Erases text in the input field upon pressing of the backspace button.
+     *
+     * @return whether the content of the text input is empty befor or after deletion.
+     */
     public boolean erase() {
         Check.isMainThread();
-        final int selection = state.selection;
+        final int delPos = state.selection;
         final String text = state.getTextString();
-        if (selection <= 0 || text.length() <= 0 || selection > text.length()) {
+        final SplitText st = new SplitText(text, delPos);
+
+        if (delPos <= 0 || text.length() <= 0 || delPos > text.length()) {
             return false;
         }
-        int removeStart = selection - 1;
-        if (MathType.getType(text, selection - 1, false, engine).type == MathType.grouping_separator) {
-            // we shouldn't remove just separator as it will be re-added after the evaluation is done. Remove the digit
-            // before
-            removeStart -= 1;
-        }
 
-        final String newText = text.substring(0, removeStart) + text.substring(selection, text.length());
-        onTextChanged(EditorState.create(newText, removeStart));
+        // For an erase operation with text selected that text will be deleted (mid part empty).
+        final String newText = st.getDelTextLeft() + st.getTextMid(true) + st.textRight;
+        onTextChanged(EditorState.create(newText, st.getDelPos()));
+
         return !newText.isEmpty();
     }
 
@@ -264,7 +347,8 @@ public void clear() {
 
     public void setText(@Nonnull String text) {
         Check.isMainThread();
-        onTextChanged(EditorState.create(text, text.length()));
+        final int cursorPos = view.getSelectionEnd();
+        onTextChanged(EditorState.create(text, cursorPos));
     }
 
     public void setText(@Nonnull String text, int selection) {
@@ -277,17 +361,63 @@ public void insert(@Nonnull String text) {
         insert(text, 0);
     }
 
-    public void insert(@Nonnull String text, int selectionOffset) {
+    /**
+     * Inserts new content into the text input field.
+     *
+     * <p>This might be anything inserted via some function of the calculator
+     * input keys, e.g. a simple digit, parentheses, some function, something 
+     * pasted from the clipboard etc.
+     *
+     * @param textToInsert the text to put into the input field at a certain position.
+     * @param cursorOffset an integer specifying whether to move the cursor after insertion.
+     */
+    public void insert(@Nonnull String textToInsert, int cursorOffset) {
         Check.isMainThread();
-        if (TextUtils.isEmpty(text) && selectionOffset == 0) {
+        if (TextUtils.isEmpty(textToInsert) && cursorOffset == 0) {
             return;
         }
         final String oldText = state.getTextString();
-        final int selection = clamp(state.selection, oldText);
-        final int newTextLength = text.length() + oldText.length();
-        final int newSelection = clamp(text.length() + selection + selectionOffset, newTextLength);
-        final String newText = oldText.substring(0, selection) + text + oldText.substring(selection);
-        onTextChanged(EditorState.create(newText, newSelection));
+        final MathType type = MathType.getType(textToInsert, 0, false, engine).type;
+        final SplitText st = new SplitText(oldText, state.selection);
+
+        boolean deleteSelection = false;
+        if (st.textSelected && type == MathType.digit) {
+            deleteSelection = true;
+        }
+
+        if (st.textSelected && type == MathType.binary_operation) {
+            // Add parentheses to the left of the text to be inserted and prepare to move
+            // the cursor to inside of the parentheses, e.g. when pressing "^2", "+" etc.
+            // with text selected. At that position the _selected_ text will be inserted.
+            textToInsert = "()" + textToInsert;
+            cursorOffset = -textToInsert.length() + 1;
+        }
+
+        final int insertedTextLength = textToInsert.length();
+        // pluginPos is the position at which to plug in selected text in the string to be
+        // inserted, i.e. a "local" position (in contrast to a "global" cursor position in
+        // the text input field).
+        final int pluginPos = insertedTextLength + cursorOffset;
+        // For pluginPos == insertedTextLength the inserted text is split into a left
+        // and a right part.
+        final String insertLeft = textToInsert.substring(0, pluginPos);
+        final String insertRight = textToInsert.substring(pluginPos, insertedTextLength);
+
+        final String textMid = st.getTextMid(deleteSelection);
+        // New content of text input field (with example strings in comments, assuming the
+        // text input field to contain "5*6+7*8" with "6+7" selected and "^2" pressed).
+        final String newText = st.textLeft // "5*"
+                             + insertLeft // "("
+                             + textMid // "6+7"
+                             + insertRight // ")^2"
+                             + st.textRight; // "*8" => "5*(6+7)*8"
+
+        // Example cursor position: after the parentheses and the operator, i.e. at: "5*(6+7)^2|*8".
+        int newCursorPos = st.textLeft.length() + insertLeft.length() + textMid.length();
+        if (st.textSelected) newCursorPos += insertRight.length();
+        newCursorPos = clamp(newCursorPos, newText);
+
+        onTextChanged(EditorState.create(newText, newCursorPos));
     }
 
     @Nonnull