A weighted average multiplies each value by its weight, adds the results, and divides by the total weight. Values with more weight count for more.
Weighted average = Σ (value × weight) ÷ Σ weights
On the 30-day sample below: ₹597.50.
When to use it
Whenever you average averages, such as daily basket sizes, the days have different numbers of orders behind them. Weighting by orders gives the true average basket across all orders.
Worked example
Here each day's average basket is weighted by that day's orders. Day 17 had the most orders and the smallest baskets (it was a sale), so the weighted average comes out below the simple average of the daily figures.
=SUMPRODUCT(E2:E31,C2:C31+D2:D31)/SUM(C2:D31)| Day | Website orders | App orders | Average basket (₹) |
|---|---|---|---|
| 1 | 24 | 18 | ₹612.00 |
| 2 | 27 | 21 | ₹598.00 |
| 3 | 22 | 19 | ₹640.00 |
| 4 | 30 | 22 | ₹587.00 |
| 5 | 28 | 24 | ₹605.00 |
| 6 | 25 | 20 | ₹622.00 |
| 7 | 31 | 23 | ₹579.00 |
| 8 | 29 | 25 | ₹601.00 |
| 9 | 26 | 22 | ₹633.00 |
| 10 | 33 | 26 | ₹590.00 |
| 11 | 30 | 24 | ₹615.00 |
| 12 | 28 | 23 | ₹608.00 |
| 13 | 35 | 27 | ₹584.00 |
| 14 | 32 | 25 | ₹597.00 |
| 15 | 29 | 24 | ₹626.00 |
| 16 | 34 | 28 | ₹593.00 |
| 17 | 61 | 44 | ₹548.00 |
| 18 | 31 | 26 | ₹611.00 |
| 19 | 36 | 29 | ₹589.00 |
| 20 | 33 | 27 | ₹603.00 |
| 21 | 30 | 25 | ₹620.00 |
| 22 | 37 | 30 | ₹586.00 |
| 23 | 35 | 28 | ₹599.00 |
| 24 | 32 | 27 | ₹614.00 |
| 25 | 38 | 31 | ₹581.00 |
| 26 | 36 | 29 | ₹595.00 |
| 27 | 34 | 28 | ₹607.00 |
| 28 | 40 | 32 | ₹576.00 |
| 29 | 37 | 30 | ₹602.00 |
| 30 | 39 | 33 | ₹590.00 |
Common mistakes
- Pick the weight that matches the question. Average basket per order is weighted by orders; average price per unit is weighted by units.
- The weights must line up row for row with the values.
- If all weights are equal, the weighted and simple averages are the same, which is a quick check that the formula is right.
Calculate it yourself
Related methods
See all statistics methods or the business metrics they are used on.
Further reading
Questions people ask
- What is weighted average?
- A weighted average multiplies each value by its weight, adds the results, and divides by the total weight. Values with more weight count for more.
- What is the formula for weighted average?
- Weighted average = Σ (value × weight) ÷ Σ weights. On the 30-day sample data the result is ₹597.50.
- How do you calculate weighted average in Excel?
- Use =SUMPRODUCT(E2:E31,C2:C31+D2:D31)/SUM(C2:D31) with the data in rows 2 to 31. The same formula works in Google Sheets.
About the data on this page
The figures come from a small made-up dataset, printed above in full so you can check every number by hand. Download it as daily.csv. The results are computed from those rows when the page is built, and the Excel formulas, SQL and Python on these pages are run against the same rows before publishing, so the code and the answers agree.
To get these numbers from your own data without writing formulas, try AnalyzeIt: ask in plain words and it shows the working behind every figure.
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