Today we will learn how to calculate weighted average in Excel with percentages.
What is weighted average ?
Weighted average or weighted mean is defined as [from wikipedia],
The weighted mean is similar to an arithmetic mean …, where instead of each of the data points contributing equally to the final average, some data points contribute more than others.
…If all the weights are equal, then the weighted mean is the same as the arithmetic mean.
Why should you calculate weighted average?
Well, it is because, in some situations normal averages give in-correct picture. For eg. assume you are the CEO of ACME Widgets co.. Now you are looking annual salary report and being the numbers-gal you are, you wanted to find-out the average salary of your employees. You asked each department head to give you the average salary of that department to you. Here are the numbers,
Now, the average salary seems to be $ 330,000 [total all of all salaries by 5, (55000+65000+75000+120000+1200000)/5 ].
You are a happy boss to find that your employees are making $330k per year.
Except, you are wrong. You have not considered the number of employees in each department before calculating the average. So, the correct average would be $76k as shown above.
How to Calculate Weighted Average in Excel with Percentages
There is no built-in formula in Excel to calculate weighted averages. However, there is an easy fix to that. You can use SUMPRODUCT formula. By definition, SUMPRODUCT formula takes 2 or more lists of numbers and returns the sum of product of corresponding values. [related: Excel SUMPRODUCT Formula – what is it and how to use it?]
So, if you have values in B4:B8 and the corresponding weights in C4:C8, you can use SUMPRODUCT like this to get weighted average.
=SUMPRODUCT(B4:B8, C4:C8)
Caution: However, the above method works only if C4:C8 contains weights in percentages(%) totaling to 100%.
WAvg Formula Pattern (use this with your data)
=SUMPRODUCT(<your values>, <your weights>)What if my percentage weights don’t add up to 100%?
May be your weights are more than 100 percent. Or may be they are less than 100 percent. In both cases, you can use the below formula variation.
=SUMPRODUCT(B15:B19, C15:C19) / SUM(C15:C19)
The idea is to divide the total of weights with the SUMPRODUCT result so that we can adjust Weighted Average as the weights don’t add up to 100 percent.
WAvg Formula Pattern when weights don’t add up to 100 percent
=SUMPRODUCT(<your values>, <your weights>) / SUM(<your weights>)Weighted Average when you have counts instead of weights:
If you have count of observations instead of weights, you can still use the SUMPRODUCT formula to calculate weighted average in Excel.
Here is the formula for above example:
=SUMPRODUCT(B26:B30, C26:C30) / SUM(C26:C30)
Notice that this formula is same as the formula for weighted average with weights not adding up to 100 percent.
WAvg Formula Pattern when you have counts instead of weights
=SUMPRODUCT(<your values>, <your counts>) / SUM(<your counts>)Weighted Average with Extra Conditions
Let’s say you have city wise observations and weights. And you want to calculate the weighted average, only for Boston values. In this case, you can use a variation of the formula like below:
=SUMPRODUCT((C5:C16)*(B5:B16=F5),D5:D16)/SUMIFS(D5:D16,B5:B16,F5)
How does this formula work?
- SUMPRODUCT calculates the total value for BOSTON by summing up C5:C16 (value column) where B5:B16 is Boston (highlighted portion of the formula) and multiplies that with the counts.
- So in the above example, this will just give us the total of Boston – ie 218,600
- We then divide this with the total count of Boston (using the SUMIFS formula) – ie 400
- This results in the weighted average for Boston values alone – ie 546.50
For more information on how the conditions work inside SUMPRODUCT formula, please read this article.
Download Weighted Average Calculation Example Workbook:
In this workbook, you can find 4 examples on how to to calculate weighted average in excel. Go ahead and download it to understand the formulas better.
Weighted Average in Excel – Formula Explained
Here is a video with Weighted Average formula explained. Please watch it below to learn more. Alternatively, head to my YouTube page to see the weighted averages in Excel video.
In Conclusion
Weighted averages are a great way to explain data and every data analyst should know how and when to use them with their data. Apart from Weighted Average, I suggest learning how to use moving average and average of top n values. These will help you explain the data and trends to your audience better.
Do you use Weighted Mean / Weighted Average?
What do you use it for? What kind of challenges you face? Do you apply any tweaks to weighted average calculations? Please share your ideas / tips using comments.
46 Responses to “6 Best charts to show % progress against goal”
Chandoo, thanks for another interesting post.
One thing I'm missing is the question: What is progress, what does one want to know exactly?
I'm asking the question because I think of progress as not the same as "state of completion." Percentages/bars, etc., as shown above, are great to communicate state of completion, but less so for progress.
That's because project progress is how state of completion *relates to* the resources spent so far. Resources can be things like dollars spent, hours spent or project time passed. For example, 5% would be "good progress" in the first week of a one-year project, but terrible progress in the last week of the project.
The way I prefer to report progress is as a simple line chart with time on the x axis, and maybe a marking for the end point (and maybe an "ideal"/"as planned" line).
If it really must be a single number, you could go a EVA-ish route and divide the current % of completion by the current % of project time passed, which gives you a schedule performance index (1 or bigger than 1 = good; smaller than 1 = bad). For this, your suggested charts should work great!
I avoid 'progress' except where I can objectively assess progress, such as counting bricks laid or concrete poured. For intellectual work, I don't think that its possible to measure progress to completion with any reliability or credibility. I prefer to update forcasts of completion date, because that's where the effect of completion on dependent activities, deliverables and outturn value of the project is felt. This is also referred to as the 0-100 method. An activity is set at 0 complete until its actually finished, when it is set at 100% complete.
Hi Chandoo,
Great post! I have a preference towards thermometer charts too mainly because of the target/actual comparison.
Just an FYI...seems like the the screen shot for the pies #4 are under the #5 heading. Also the pies conditional formatting is something that doesn't accurately portray completion since the pies are segmented into quarters.
AND also a little trivia...those "pies" are called Harvey Balls, named after Harvey Poppel...
Chandoo,
I wonder. Is there a trick to unzipping your files?
I always seem to end up with a series of XML files rather than an XLSX.
Thanks a lot. 🙂
Eric~
Hi Chandoo,
Thank you again for this amazing help you are so resourcefull to make us little bit more amazing everyday.
When I click on the link on the page "http://img.chandoo.org/c/best-charts-for-goal-progress-comparison.xlsx" it is always bringing me to a zip file with all XML files without the XLSX file. I tried with mozilla and IE.
Thank you
[…] http://chandoo.org/wp/2014/03/10/best-charts-to-show-progress/?utm_source=feedburner&utm_medium=… […]
@All having trouble with download file.
1. Download the file.
2. Rename the extension as .xlsx
3. Double click or open it in Excel
Doesn't make any difference Chandoo, still end up with a zip file full of xml related files/folders
@Ian H
Download the zipped file and rename it to *.xlsx
where * is the filename
ps: Great name!
Many thanks for your help Hui but not sure why you are repeating what Chadoo said and which I first posted to because it didn't work for me. I did as he said and it didn't work, hence my post.
Chandoo says:
March 11, 2014 at 1:52 am
@All having trouble with download file.
1. Download the file.
2. Rename the extension as .xlsx
3. Double click or open it in Excel
Also, please note that we are investigating an issue with our webserver settings that may be causing this behavior. Sorry for the inconvenience. I am hoping to get this fixed in next 48 hours.
I used thermometer chart & conditional formatting using traffic lights. I just recently completed a dashboard I hope you can take a look but don't know where to send it. Thanks.
The in-cell bar charts is very interesting. This is not to be used as one can easly do manipulations by changing fonts/ font size etc
Hi..this is really helpful..
but I hve one quick ques..is it possible to hve conditional formating for chart graph based on text value and not the numbers..if I take your example project one bar should be red...if data is project 2 then it should be blue..basically we mke chart based on countries n each countries are assigned specific color...so I want a way where I can use conditionsl formating and not do it manaually each month.
You can set up conditional formatting rules to do this.
See this... it may help
http://chandoo.org/wp/2010/04/01/incell-panel-chart/
Hi Chandoo,
Great article and will be very useful.
One question - is it possible to have in-cell bar chart and the percentage complete (similar to icons)?
Try something like :
=CONCATENER(REPT("|";A1*100);REPT(" ";25-A1*25);"|")
it's quite nice
Hi Chandoo,
I am a great fan of you since i stumbled upon your blog. Your blog is very informative and insightful. I liked the way you presented the 5 steps using thermometer chart. I was very much inspired by that and tried to make my own version with 20 tasks to complete. On and after 17th step it was going downward. So I wanted to ask you that is there any limitation to thermometer chart
[…] shows us the 6 best charts to use, when you want to show your progress against a goal. There’s a sample file to download, so you can experiment on your […]
Is there any xhart is available which can show achivement percentage it may 80% or 120% means more an set target.?
Hi Chandoo,
Love your site. I have a small question regarding plotting data that contains ranking. I have 2 fields - Country, Rank. Note that i don't have the absolute values from which the rank has been calculated. So what is the best way of showing this on a graph given only the above 2 fields. Appreciate it
Regds,
Ross
@Ross
I would assign a set of simple numeric values to your ranks
Even a simple 1 to 10 makes plotting relativities easy
Dear Chandoo Sir,
Really awesome post.
Thanks.
Vignesh.V
We can always rely on Chandoo to explain to us clearly things that perhaps we already knew but weren't putting into practice the best way.
A limit I never liked about data bars was that they are monochrome - one colour for positive values, one colour for negative. So a couple of weeks ago I sat down to figure out a workaround. If anyone's interested...
http://digimac.wordpress.com/2014/06/29/multicoloured-data-bars-in-excel/
Epic fail on my part! After three months I just found out that what worked on my machine, didn't work on others.
Problem solved, more functions added.
The link above at
To hide them use ;;; custom cell formatting code (how to).
appears to be incorrect. However, using the downloaded file and selecting a cell(s) from that example provides the easy answer.
I wondered if the pies could have a color other than black and white (which, of course, would raise the color-blindness issue that you referred to with the traffic lights example).
Hi Chandoo!
Thanks for the informative post!
I have managed to understand and replicate all of the progress graphs except one, the thermo bar. I read up on the tutorial of how to create them, and I understand almost everything about the look and use of the bar, but one problem I am having is that I cannot seem to "center" the bar into the cell like you did. The reason being that even though the highest input (progress) percent is 100%, the program automatically puts in another 20%, so instead of 100% stopping at the end of the graph, it stops 20% short and I have a huge space at the end because of it.
How did you counter that problem? I have been trying for hours to fix it
@Aden
Set the Axis limits to Minimum 0 and maximum 1
Thanks. I started running a project recently, and I found your charts to be really helpful in tracking it's progress. I'm glad I found your page.
Hi Chandoo!
Great stuff for my customized project moving forward. However, when I use the blue block bars, the %ages spark up to smt like 5000% and cannot lower them nor scale them. If I input manually such as 50% without formatting a column, the bar for 50% e.g., will fill the cell completely, so that's kind of odd... what to do?
Thanks!
I guess I have the same problem. When I put 50 and click on the percentage, it is giving me 500%. Can someone help us on this. Thanks in advance
[…] http://chandoo.org/wp/2014/03/10/best-charts-to-show-progress/ […]
Hey,
Thank you for making this page. I do have one problem with the thermo graphs. Whenever I try to drag the graphs from one cell to the cell beneath it, the data remains selected on the former.
For example, if I had a thermo with a target number in A1 and an actual number in B1 with my thermo in C1, when I drag my thermo into C2, C3, etc., all of the graphs show the results from A1 and B1.
Is there a way to have these graphs update automatically as I will be regularly working in an excel file with hundred of entries?
P.S. I removed the $ symbols from 'Select Data', but that did not fix the problem.
Thanks again!
@Lisa
Not sure but it sounds like the new cells have Conditional formats applied
Select just the new cells
Select Conditional formatting, Clear Rules, Clear Rules from selected Cells
Hi Chandoo.
I am charting on some defaulter data where greater than zero is not desirable. Problem is that I have to highlight zero as target and anything above as undesirable. Seek your help
Hi Chandoo
Great post!
But I am wondering why bullet chart is not on this list. Is there a reason for its absence?
Thank you for these instructions. The bonus 5 Step Progress Meter you included would be perfect for my project. Where can I find the instructions?
Hi,
Do you know of any simple way to reduce the Data Bars padding so that they fit within the cells?
Thanks and great posy!
Regards
Appreciating the dedication you put into your website and in depth information you
provide. It's good to come across a blog every once in a while that isn't the same out of date rehashed information. Wonderful
read! I've bookmarked your site and I'm including your
RSS feeds to my Google account.
With #1 and #2, how would you also apply a red amber green to the bars (is it possible within chart formatting or would you need to utilise CF)?
I'm thinking of an in cell bar of some kind which will show against a known goal end date how far along with the goal you are (this is to be used for 'how many of the X number of people that I need to train in X timeframe, have been trained and therefore which of each training group is on track to complete on time or falling behind'.
So there would be knowns of number of people, target end date but I'd want it to reflect accurately as some groups of trainees might only have 50 in so their 50% done would be different to a group of trainees where their group had 200 people in it - but 50% would still be the same. Somewhere there'd probably need to be something which noted that there was a different volume of trainees so it could but the remaining effort to train people into context?
Hope that makes some kind of sense, I could be waffling!
[…] charts. Its got things like “Best Charts to Compare Actuals vs Targets” and “Best charts to show progress“. I love me some charts […]
Thanks a lot my dear.
very Useful it for me.
Another great post, thanks for sharing.
Chandoo, I am just starting an Excel class, and everything in the class is new to me. I am learning how to use all of these great charts but don't know what they are all used for. Thank you for your post and I think I will be able to use this down the road throughout my business career
in the above charts , Chart #2: Conditional Formatting Data Bars
->Assume if we have completed 35% of work it is showing in Blue color ,in the same cell remaining 65% of work should shows in some color , how to show?
Hi Sir,
This is Rachit and I am a big fan of you and your work. This is to request you please make a video for Beverages Sales performance data analysis in Excel.
Regards,