Use the first two methods if you are only working with time. Use the second two methods if you are working with dates in Excel.

**Method 1 – **Calculate Turnaround Time Using TEXT Function in Excel

In the previous section, we had to change the format of the time difference to calculate the turnaround time as Excel automatically changes the time format

We can use **the TEXT function** __to change the time format__.

We have the following sample dataset of a company that loads products and ships them. You can see the arrival time of the product, loading time and shipping time. After completing all of these processes, the consumer gets the products.

To calculate the time needed for completion, we are adding the total hours to the arrival time.

**The Generic Formula:**

**=arrival_time + (SUM(loading_time,shipping_time)/24)**

We will calculate the turnaround time from this dataset.

**The Generic Formula:**

**=TEXT(Completion Time – Arrival Time, Format)**

The first argument is basic subtraction. In the format, you have to enter the time difference format that you want.

#### 1.1 Display Turnaround Time in Hours

To calculate the turnaround time in hours, use the following formula:

`=TEXT(E5-B5,"hh")`

This formula will only deliver the outcome that displays the number of hours difference for turnaround time in Excel. If your outcome is 10 hours and 40 minutes, it will display 9 hours.

#### 1.2 Display Only Minutes

To calculate turnaround time in only minutes worked, use the following formula:

`=TEXT(E5-B5,"[mm]")`

#### 1.3 Display Only Seconds

To display turnaround time in just seconds format, use the following formula:

`=TEXT(E5-B5,"[ss]")`

#### 1.4 Display Hours and Minutes

If you want to calculate the turnaround time in hours and minutes format, use the following formula:

`=TEXT(E5-B5,"[hh]:mm")`

#### 1.5 Display Hours, Minutes, and Seconds

For calculating turnaround time including all of these, use the following formula:

`=TEXT(E5-B5,"hh:mm:ss")`

We are using square brackets like** [hh],[mm]** or **[ss]** to give the whole number of Turnaround time in hours between the two dates, even if the hour is greater than 24. If you want to calculate the turnaround time between two date values where the distinction is more than 24 hours, utilizing **[hh]** will deliver the total number of hours for the turnaround time and **“hh”** will just give you the hours passed on the day of the end date.

**Method 2 – **Using MOD Function to Calculate Turnaround Time in Excel

If your time passes midnight, you will see the following turnaround time like the following:

It will display a negative value. To resolve this problem, we can use** the MOD function**.

**The Generic Formula:**

**=MOD(Delivery-Order_time,1)*24 hrs**

This formula handles the negative time by utilizing the **MOD **function to “reverse” negative values to positive values.

Select **Cell E5 **and enter the following formula:

`=MOD(D5-C5,1)*24`

**Read More:** How to Calculate Years of Service in Excel

**Method 3 – **Use of NETWORKDAYS Function to Calculate Turnaround Time

If you are working with dates to calculate the turnaround time, use the **NETWORKDAYS** function. In Microsoft Excel,** the NETWORKDAYS function** counts the number of dates between two specific dates.

**The Generic Formula:**

**=NETWORKDAYS(start_date, completion_date)**

**Note to Remember:** By default, the **NETWORKDAYS **function recognizes only Saturday and Sunday as weekends and you cannot customize these weekends. The **NETWORKDAYS.INTL function** will customize weekends.

To demonstrate, we are using this dataset:

We have dates that indicate the dates of order placement and delivery date. We used **the DAYS function** to calculate the total days between the dates in the “Total Days” column. According to the formula, our turnaround days will be the difference between these dates. But, as the company has weekends, the **NETWORKDAYS **function won’t consider them.

#### 3.1 Turnaround Time in Days

To calculate the turnaround time in days, select **Cell E5 **and enter the following formula:

`=NETWORKDAYS(B5,C5)`

The turnaround time will be calculated.

#### 3.2 Turnaround Time in Hours

You can use this Excel formula to calculate the turnaround time in hours. You have to multiply the working hours with the function.

**The Generic Formula:**

**=NETWORKDAYS(order date,delivery date)*working hours per day**

To calculate the turnaround time in hours, select **Cell E5 **and enter the following formula:

`=NETWORKDAYS(B5,C5)*8`

**Method 4 – **Use of DAYS360 Function to Calculate

If you don’t want to include the weekends or holidays in your around time, use the **DAYS360** function.

The **DAYS360 **function calculates and returns the number of days between two dates based on a 360-day year (twelve 30-day months).

**The Syntax:**

**=DAYS360(start_date,end_date,[method])**

**Arguments:**

**Start_date, end_date: **These are the dates from where you want to know the difference. If your **start_date** happens after **end_date**, it will return a negative number. You should enter the dates in **the DATE function** or derive them from formulas or functions. For instance, use DATE(2022,2,22) to return on the 22nd day of February 2022. It will show some errors if you enter them as text.

**Method: **This is Optional. It is a logical value that determines whether to utilize the U.S. or European method in the analysis.

We will use the previous dataset for illustration.

To calculate the turnaround time in days, select **Cell E5 **and enter the following formula:

`=DAYS360(B5,C5)`

## How to Calculate Turnaround Time in Excel Excluding Weekends and Holidays?

In the previous section, we used the **NETWORKDAYS **function to calculate the turnaround time in days or hours. This function doesn’t consider the weekends in the turnaround time. It automatically excludes the weekends.

The **NETWORKDAYS **function can be used to exclude the holidays in between the dates.

**The Generic Formula:**

**=NETWORKDAYS(start_date, completion_date, holidays)**

We can see in the sample dataset that there are some holidays.

We will calculate the turnaround time excluding the weekends.

To calculate the turnaround time in days, select **Cell E5 **and enter the following formula:

`=NETWORKDAYS(B5,C5,$D$10:$D$18)`

We have used absolute cell references for the range of cells containing holidays. It will give a wrong output if you don’t use absolute cell references because the cell references will change while auto-filling the cells in **Column E. **

**Read More:** How to Calculate Turnaround Time in Excel Excluding Weekends

## How to Calculate Average TAT in Excel?

Calculating the TAT (turnaround time) is equivalent to calculating the average time. You have to add all the turnaround time and divide them by the number of projects, days, weeks, etc.

We will use **the AVERAGE function** to calculate the average turnaround time.

We calculated the turnaround time for some projects. We used the **NETWORKDAYS **function to calculate the turnaround time in days excluding the weekends.

We used the following formula to calculate the turnaround time:

`=NETWORKDAYS(C5,D5)`

To calculate the average **TAT** in days, select **Cell C9 **and enter the following formula:

`=AVERAGE(E5:E7)`

**Read More:** How to Calculate Average Handling Time in Excel

## How to Calculate TAT Percentage in Excel?

It will be an example of the increase in percentage for a particular turnaround time.

We have turnaround time of a company for two weeks. The company wants to improve its turnaround time. After they made a change, they reduced their loading and shipping time. This decreased their turnaround time.

To calculate the turnaround time in hours, we used the **TEXT **function in the formula:

`=TEXT(E5-B5,"hh")`

**The Generic Formula to Calculate the TAT Percentage:**

**Increase in Percentage = (Week1 TAT – Week2 TAT) / Week1 TAT**

To calculate the **TAT **percentage in days, select **Cell D12 **and enter the following formula:

`=(F6-F10)/F6`

**Download Practice Workbook**

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