Weighted Average in Excel
A weighted average gives some values more influence than others. Grades, portfolio returns and price-per-unit calculations all use it.
The formula
=SUMPRODUCT(values, weights)/SUM(weights)
If your weights already add up to 1 (or 100%), =SUMPRODUCT(values, weights) is enough on its own. Dividing by SUM(weights) keeps it correct either way.
Why not AVERAGE?
AVERAGE treats every value equally. In the practice sheet, the Midterm and Final count for more than the Quiz, so a plain average would be wrong.
Practice
Weighted averages are common in finance and analyst screens. Take the free Excel interview test →