In Excel: calculate a weighted average with =SUMPRODUCT(A2:A10,B2:B10)/SUM(B2:B10), where column A holds the values and column B their weights — plain AVERAGE ignores the weights entirely.
3 value/weight pairs · Unweighted mean: 80.0000
Need it as an auditable file?
Ships inside the linked template — formula-driven, unlocked, audit-ready.
What this does
A weighted average counts some values more than others: each value is multiplied by its weight, the products are summed, and the total is divided by the sum of the weights. SUMPRODUCT does the multiply-and-sum in one step. Dividing by SUM(weights) makes the formula correct even when the weights do not add up to 1 or 100%. Keep the inputs visible and clearly labelled and the whole thing stays auditable — anyone who opens the file later, including you, can see at a glance exactly what feeds the result and change one assumption without hunting through the formula. Treat “weighted formula excel” as a small repeatable workflow rather than a one-off click you hope to remember next time. Use a small test block before the live file, so any surprise in the affected formula shows up while it is still harmless. When a formula is involved, keep the inputs labelled beside it, reference cells instead of typing values, and apply number formatting only after the result checks out. That turns a calculation you can defend to a CFO or an auditor into a method you can reuse, explain, and defend when the workbook leaves your screen.
A worked example
Grades 90, 80, 70 carry weights 50%, 30%, 20%. =SUMPRODUCT({90;80;70},{0.5;0.3;0.2})/SUM({0.5;0.3;0.2}) returns 83. The unweighted AVERAGE would say 80 — the heavier weight on the 90 pulls the true result up by three points. Course grades, portfolio returns, average purchase prices, survey scores — whenever observations matter unequally, the weighted average is the honest summary number. If there is any chance you will reuse this, drop it into a small template tab right now: a labelled input area on the left and the formula beside it, checked once against the tool above. Next time the same question comes up, the answer is a single paste away instead of a rebuild from memory.
In Google Sheets
Everything above works in Google Sheets too. Excel and Sheets share the formula syntax used here; only the surrounding menus are arranged differently. That portability is deliberate — learn it once and it follows you between the two tools and across Windows and Mac. The aim was to get you unstuck fast and leave you a little more capable than a copy-paste would. The answer is at the top, the tool proves it, and the detail above shows why it holds — so the next time a colleague asks, you can answer without reaching for search. The short version of “weighted formula excel”: the answer is at the top of this page, the tool proves it on your own numbers, and the sections above explain why it holds so the next variation does not stump you. Excel rewards people who reference cells instead of typing values and who keep inputs separate from formulas, because that is what makes a result you can audit months later. Build it once, deliberately, with the live tool as a check, and you convert a one-off lookup into a reusable skill — which is the whole point of learning the why and not just the what.
Common mistakes
- Using
AVERAGEand silently ignoring the weights. - Skipping the division by
SUM(weights)when weights do not sum to 1. - Misaligned ranges (
A2:A10againstB2:B9) causing#VALUE!. - Blank weight cells counting as zero without anyone noticing the row dropped out.
Frequently asked questions
What is the weighted average formula in Excel?
=SUMPRODUCT(values,weights)/SUM(weights). There is no built-in WEIGHTEDAVERAGE function.
Do the weights have to add up to 100%?
No — the division by SUM(weights) normalizes any positive weights.
How do I do a weighted average in a pivot table?
Add a helper column value×weight, sum both in the pivot, and divide via a calculated field.