SUMPRODUCT Formula in Excel
SUMPRODUCT & Weighted Averages
It returns the sum of the products of corresponding ranges or arrays
=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:
STEP 2: The SUMPRODUCT arguments:
What is the first array that contains the data?
We want to get the units sold so select those values.
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.
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!
Advanced SUMPRODUCT Function: Conditional Date
If you want to find out the total sales for a particular month, then the SUMPRODUCT function is your answer. You can create a criteria for a specific date range, a particular month or a year.
In the example below I show you how to use the SUMPRODUCT function to sum up the total sales for a particular month.
Advanced SUMPRODUCT Function: Maximum Sales
What makes the SUMPRODUCT function even more powerful is its ability to nest formulas, or in simple terms, add another function within the SUMPRODUCT function.
Instead of getting the Total Sales for a region, we can extract the Maximum sales value simply by entering the MAX function before the criteria. See how below.