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how to calculate a weighted average interest rate in excel. 2000 x 38 76. Divide the total per loan weight factor by the total loan amount and then multiply by 100 to calculate the weighted average.
Weighted Average In Excel How To Calculate Weighted Average In Excel from www.educba.com
Weighted average v1 x w1 v2 x w2 v3 x w3w1w2w3. 1Select a blank cell for example Cell E3 enter the below formula into it and press the Enter keySee screenshot. Calculating Weighted Average in Excel The concept of an average comes from mathematics average can be defined as the result obtained by adding several quantities together and then dividing this total by the number of quantities.
SUMPRODUCT A2A3B2B3SUM B2B3 Replace the cell name values with the correct range of cells your data occupies.
The average is calculated by adding a range of numbers together and then dividing this total by the number of values in the range. This is 50000 002 100000 004 5000. Weighted average v1 x w1 v2 x w2 v3 x w3w1w2w3. The weighted average combines the interest rates into a single interest rate that yields a combined cost that is about the same as the cost of the original separate loans.
