![]() The second method uses the SUMPRODUCT and SUM functions to calculate the weighted average in a single step. Well, there is no weighted average function per se, but Excel does have a way to work it out for you. ![]() ![]() The first method describes the step-by-step approach to calculating the weighted average. Below you can find the corresponding weights of the scores. Suppose your teacher says, 'The test counts twice as much as the quiz and the final exam counts three times as much as the quiz'. First, the AVERAGE function below calculates the normal average of three scores. Now you know how to calculate the weighted average by using Microsoft Excel. To calculate a weighted average in Excel, simply use SUMPRODUCT and SUM. On the HOME tab, click the arrow next to AutoSum > Average, and then press Enter. Click a cell below the column or to the right of the row of the numbers for which you want to find the average. SUM – Within the brackets, insert the range of cells containing the range of cells containing the weightsįor my example, the formula will be =SUMPRODUCT(B2:B6,C2:C6)/SUM(C2:C6). AutoSum lets you find the average in a column or row of numbers where there are no blank cells.SUMPRODUCT – Within the brackets, replace array1 with the range of cells containing the score, and replace array2 with the range of cells containing the weights.In a new cell, simply use the following formula. The term WACC is the acronym for a weighted average cost of capital (WACC), a financial metric that helps calculate a firm’s cost of financing by combining the cost of debt and the cost of equity structure. The SUMPRODUCT essentially performs steps 1 and 2 from the first method described above. I’ll now show you how to do this quickly, by taking advantage of Excel’s SUMPRODUCT and SUM functions. I purposely did this to demonstrate how to calculate the weighted average manually. The formula should look like this: SUMPRODUCT(numerical values column. ![]() This first method I have just demonstrated is a slightly long-winded approach. In a separate cell, use the SUMPRODUCT function to calculate the weighted average. Weighted Average Cost Of Capital - WACC: Weighted average cost of capital (WACC) is a calculation of a firms cost of capital in which each category of capital is proportionately weighted. Method 2: Use the SUMPRODUCT to calculate the weighted average Since my score is out of 100, I can say that this student had a weighted average of 68.05%. Doing this for my example means I divide 6805 by 100, which comes to 68.05. ![]()
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