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Excel

3 Ways to Calculate a Weighted Average

Multiply each value by its matching weight, add the products, and divide by total weight. Learn three ways to calculate a weighted average, including Excel formulas.

By TheFinanceBase Team 3 min read
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To calculate a weighted average, multiply each value by its matching weight, add those products, then divide by the sum of the weights. In symbols: weighted average = Σ(value × weight) ÷ Σ(weight). You can do that arithmetic by hand or use either of two Excel formulas.

What the weighted-average formula means

A weighted average gives values different levels of influence. Each value is paired with a weight, and larger weights contribute more to the result. The weight for the first value must stay paired with that value, the second weight with the second value, and so on.

For values x and weights w, the formula is:

Weighted average = (x₁w₁ + x₂w₂ + … + xₙwₙ) ÷ (w₁ + w₂ + … + wₙ)

If the weights already add to 1—or to 100% when expressed as percentages—the denominator is 1 (or 100%), so the weighted average is the sum of the value-weight products using the matching weight scale. Dividing by the total weight also works when weights are counts, quantities, or percentages that do not add to 100%.

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Way 1: Expand the arithmetic

For a short list, write out each value multiplied by its corresponding weight. Add those products, then divide by the total of the weights.

Suppose scores of 80 and 90 have weights of 2 and 3:

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(80 × 2 + 90 × 3) ÷ (2 + 3) = 430 ÷ 5 = 86

The score of 90 has greater influence because its weight is 3 rather than 2. For a few values, this method is easy to inspect with a basic calculator or on paper.

Ways 2 and 3: Calculate a weighted average in Excel

Suppose values are in C5:C9 and their corresponding weights are in D5:D9. Keep the two ranges the same length and in the same order. Both formulas below calculate the sum of the paired products divided by the sum of the weights.

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Way 2: Use SUM with an array expression

Enter:

=SUM(C5:C9*D5:D9)/SUM(D5:D9)

The expression C5:C9*D5:D9 multiplies corresponding entries; SUM adds those products. The second SUM totals the weights. ExcelDemy says this formula can be entered normally in Office 365 and Excel 2021, while earlier versions may require Ctrl+Shift+Enter; check the behavior for your Excel version. ExcelDemy’s weighted-average Excel tutorial describes the method.

Way 3: Use SUMPRODUCT divided by SUM

Enter:

=SUMPRODUCT(C5:C9,D5:D9)/SUM(D5:D9)

This is a concise way to express “multiply each matching pair and add,” followed by normalization by the total weight. Microsoft defines SUMPRODUCT as returning “the sum of the products of corresponding ranges or arrays.”

Method Best fit Practical trade-off
Expanded arithmetic A few values, calculated by hand or checked line by line Transparent, but cumbersome for long lists
SUM(range*range)/SUM(weights) A spreadsheet formula using array multiplication Compact; entry behavior can vary by Excel version
SUMPRODUCT(values,weights)/SUM(weights) A compact formula for paired ranges Directly represents paired multiplication and summing; ranges must have matching dimensions

When the values and weights are aligned and the formulas are entered correctly, all three methods give the same result.

Check the weights and Excel ranges

  • Keep pairs aligned. A weight applied to the wrong value changes the result.
  • Divide by total weight. Leave out /SUM(weights) only when the weights are known to total 1 in decimal form (or 100% on a percentage scale).
  • Match the dimensions. Microsoft says SUMPRODUCT array arguments must have the same dimensions; otherwise Excel returns #VALUE!.
  • Check for text or blanks. Microsoft says SUMPRODUCT treats nonnumeric array entries as zero, which can affect an unexpected result.
  • Use bounded references. Microsoft cautions against full-column references in SUMPRODUCT for performance: Excel may process all 1,048,576 rows in each referenced column. A defined range or table reference avoids needlessly processing entire columns.
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When a weighted average is useful

Use a weighted average when the values do not contribute equally. For example, a price average weighted by quantities gives greater influence to prices associated with more units. A grade calculation can likewise reflect different weights for assessments. When each item is equally important, the ordinary mean is the equal-weight case.

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