Weighted Average - Calculator
Calculator for weighted average in finance, statistics, and data. Enter values and weights.
Applications - finance (portfolio average price), statistics (weighted data average), academic grading (GPA with course credits).
Decimal numbers - the calculator supports decimal numbers. Use a comma or period as the decimal separator.
Bulk import - paste a list of values separated by spaces into the first field. Do the same for weights.
Result
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Applications - finance (portfolio average price), statistics (weighted data average), academic grading (GPA with course credits).
Decimal numbers - the calculator supports decimal numbers. Use a comma or period as the decimal separator.
Bulk import - paste a list of values separated by spaces into the first field. Do the same for weights.
Formula for Calculating Weighted Average
The mathematical formula for calculating weighted average.
Weighted Average = (value1 × weight1 + value2 × weight2 + ...) / (weight1 + weight2 + ...).
Example: (8 × 2 + 6 × 1 + 9 × 3) / (2 + 1 + 3) = 49 / 6 = 8.17
The calculation works by multiplying each value by its weight, adding all these products together, and dividing the result by the sum of all weights.
Definition of Weighted Average
Weighted average is a statistical measure that accounts for the different importance of individual values.
Unlike arithmetic average where all values have equal weight, weighted average assigns each value a specific weight (importance). Values with higher weights affect the result more than values with lower weights.
Weighted average is used in many areas - from finance and statistics, through portfolio evaluation, to calculating grade averages in school.
Where is Weighted Average Used?
Weighted average has wide practical applications.
- Finance: Calculating average stock price in a portfolio, where weight is the number of shares purchased.
- Statistics: Average of values from different sized groups, where weight is the group size.
- Education: Grade average with different subject weights (e.g., finals vs. regular subjects).
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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