Weighted Average - Calculator
Weighted average calculator for finance, statistics and data. Enter values and weights.
Applications - Finance (portfolio average price), Statistics (weighted data average), Education (grade average with weights).
Decimal numbers - the calculator supports decimal numbers. Use comma or period as separator.
Bulk import - paste a space-separated list of values into the first field. The same applies for weights.
Result
Enter values and weights to see the result.Applications - Finance (portfolio average price), Statistics (weighted data average), Education (grade average with weights).
Decimal numbers - the calculator supports decimal numbers. Use comma or period as separator.
Bulk import - paste a space-separated list of values into the first field. The same applies for weights.
Formula for calculating weighted average
The mathematical formula for calculating weighted average.
The calculation works by multiplying each value by its weight, adding all products, and dividing the result by the sum of all weights.
Definition of weighted average
The weighted average is a statistical measure that accounts for the varying importance of individual values.
Unlike the arithmetic average, where all values have the same weight, the weighted average assigns a specific weight (importance) to each value. Values with higher weight influence the result more than values with lower weight.
Weighted average is used in many fields - from finance and statistics, through portfolio valuation, to calculating grade averages in school.
Where is weighted average used?
Weighted average has broad practical applications.
- Finance and investments: When calculating the average stock price in a portfolio, where different stocks have different weights based on the investment amount.
- Academic assessment: When calculating grade averages, where different subjects or tests have different weights (importance).
- Statistics and research: In surveys and studies, where different groups of respondents have different weights based on their representation in the population.
Frequently Asked Questions About Weighted Average
- What is the difference between arithmetic and weighted average?
- Arithmetic average adds all values and divides by the count. Weighted average also considers the importance (weight) of each value - values with higher weights have more influence on the result.
- How to calculate weighted average in Excel?
- In Excel use the formula =SUMPRODUCT(values, weights)/SUM(weights). For example: =SUMPRODUCT(A1:A3, B1:B3)/SUM(B1:B3) calculates the weighted average of values in A1:A3 with weights in B1:B3.
- Does the sum of weights need to be 100%?
- No, weights can be any positive numbers (1, 2, 3 or 10%, 30%, 60%). The formula divides by the sum of weights, so the result is correct regardless of the scale used.
- When to use weighted average instead of arithmetic?
- Use weighted average when individual values have different importance or represent different sized groups. For example, when calculating grade averages with different subject weights.
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