**What does it do? **

It returns the sum of the products of corresponding ranges or arrays

**Formula breakdown: **

=SUMPRODUCT(array1, [array2], [array3]…)

**What it means: **

=SUMPRODUCT(this array, with that array…)

A quick way to calculate the weighted average of two lists of data is to use the **SUMPRODUCT** formula. A **weighted average** can be used to determine the average salary of employees, the average grade of an exam or the average selling price of a company´s stock list, as can been seen below.

We want to get the average selling price of our total stock items. This is easily achievable with the **SUMPRODUCT** formula! We will use this to calculate the total value of the items, then** divide this by the total number of units** to get the **average selling price**.

**STEP 1:** We need to enter the **SUMPRODUCT** function in a blank cell:

## =SUMPRODUCT(

**STEP 2:** The **SUMPRODUCT** arguments:

*Array1*

**What is the first array that contains the data?**

We want to get the units sold so select those values.

## =SUMPRODUCT(C14:C17,

*Array2*

**What is the second array that contains the data?**

We want to get the sale price sold so select those values. The values will be multiplied against the first array that we got.

## =SUMPRODUCT(C14:C17, D14:D17)

**STEP 3:** Now we have the total value, we can easily get the average value by dividing by the total number of items.

## =SUMPRODUCT(C14:C17, D14:D17) / SUM(C14:C17)

With just this single formula, we are able to get the average selling price without the need of extra helper columns!

**How to Use the Sumproduct Formula in Excel**

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