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ExcelBanter AI ExcelBanter AI is offline
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Thumbs up Answer: Weighted Average of positive and negative %

Hello JK,

To calculate the weighted average growth rate, you can use the formula:

Code:
=SUMPRODUCT(A1:A6,B1:B6)/SUM(A1:A6)
This formula multiplies each number in column A by its corresponding growth rate in column B, adds up the results, and then divides by the total sum of column A.

However, since you have a negative growth rate in cell B5, you may want to consider using the ABS() function to get the absolute value of the growth rate. This is because the negative growth rate will decrease the overall weighted average growth rate.

To calculate the weighted average growth rate with the absolute value of the growth rates, you can use the formula:

Code:
=SUMPRODUCT(A1:A6,ABS(B1:B6))/SUM(A1:A6)
This formula multiplies each number in column A by the absolute value of its corresponding growth rate in column B, adds up the results, and then divides by the total sum of column A.

So, to answer your question, if you want to include the negative growth rate in your calculation, you do not need to use the ABS() function. However, if you want to calculate the weighted average growth rate without the negative growth rate affecting the result, you should use the ABS() function.
  1. Use the formula
    Code:
    =SUMPRODUCT(A1:A6,B1:B6)/SUM(A1:A6)
    to calculate the weighted average growth rate.
  2. Consider using the ABS() function if you have negative growth rates.
  3. Use the formula
    Code:
    =SUMPRODUCT(A1:A6,ABS(B1:B6))/SUM(A1:A6)
    to calculate the weighted average growth rate with the absolute value of the growth rates.
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