## What Is the Weighted Average?

The weighted average is a neat way to calculate the average of the items that have different quantities as well as prices. For example, you bought * 4* apples at a unit price of

*and*

**$1.5***oranges at a unit price of*

**6***. Your average cost will be the weighted average of these two costs.*

**$2****Weighted Average** =**∑(Number of units* Unit Price)/Number of Total Units**

In this case the average cost is = **(1.5*4 + 2*6) / 10 ****= 1.8**

The term * “weighted average”* refers to an average in which each of the quantities to be averaged is given a weight. We can determine the relative relevance of each quantity using this weighting. In this case, the weight was the number of units bought for each fruit.

## How to Calculate the Average Share Price in Excel: 2 Easy Ways

### Method 1 – Using the SUMPRODUCT Function

**Steps:**

- Select the
**F5**cell and use the following formula:

`=SUMPRODUCT(C5:C10,D5:D10)/C11`

- Hit
**Enter**.

- We will have the average share price of all the shares.

### Method 2 – Applying the Formula Manually

**Steps:**

- Select the
**F5**cell and use the following formula:

`=SUMPRODUCT(C5:C10,D5:D10)/C11`

- Hit the
**Enter**button.

- We will have the average share price of the shares.

**Read More: **How to Calculate Sum & Average with Excel Formula

## How to Calculate the Average Trading Price

The average trade price is determined by adding up the prices of the transactions done over a specified time period and then dividing that total by the total number of trades.

The formula of the * Average Trade Price* is:

**Average Trade Price, = ∑(Prices)/ Number of Trades**

**Steps:**

- Select the
**F5**cell and insert the following formula:

`=D11/C11`

- Hit
**Enter**.

- We will have the average trading price of the trades.

**Download the Practice Workbook**

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