If you are looking for different types of time series forecasting methods in Excel, then you will find this article useful. **Forecasting methods** are helpful to determine the future demands or sales or temperature etc. by analyzing the available data for a time series. So, let’s start our main article.

**Table of Contents**hide

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## 3 Methods of Time Series Forecasting in Excel

Here, we have the following dataset containing the records of demands from ** Jan-21 **to

**, and using these values we will determine the demand for**

*Sep-21***by using**

*Oct-21***3**different forecasting methods.

We have used *Microsoft Excel 365* version here, you can use any other versions according to your convenience.

__Method-1__: Exponential Time Series Forecasting

We will discuss the exponential time series forecasting method here to do time series forecasting correctly to determine the demand for ** Oct-21**. For this purpose, you can use the

**FORECAST.ETS function**along with the

**Forecast Sheet**option of Excel.

** Steps**:

Firstly, we will use a formula for the exponential forecasting method.

➤ Type the following formula in cell

**D13**.

`=FORECAST.ETS(C13,D4:D12,C4:C12,1,1)`

Here, **C13 **is the month on which we want to determine the demand, **D4:D12 **is the range of demands, **C4:C12 **is the range of months that have available demands, **1 **is for detecting seasonality automatically, and the last **1 **is for automatic completion of missing values with the help of linear interpolation.

➤ Press **ENTER**.

Then, you will get the forecasted demand for ** Oct-21**.

Now, we will use the built-in Excel feature to determine the demand value for ** Oct-21 **using the exponential forecasting method.

➤ Select the range of the time series and their corresponding demand values and then go to the

**Data**Tab >>

**Forecast**Group >>

**Forecast Sheet**Option.

After that, the **Create Forecast Worksheet **dialog box will open up with the graph containing the forecasted demands.

You can customize this graph by clicking on **Options**.

➤ We have changed the date in the **Forecast End **box to the date **01-10-2021** here and then clicked on the **Create **option to represent the forecasted value in a table.

Finally, you will have the following table with the demand for ** Oct-21 **and this value is similar to the value we got using the previous function.

Read More: **FORECAST Function in Excel (with other Forecasting Functions)**

__Method-2__: Linear Time Series Forecasting

In this section, we are going to use the linear time series forecasting method to determine the demand for ** Oct-21**. To do this, we will use the

**FORECAST. LINEAR function**here.

** Steps**:

➤ Type the following function in cell

**D13**.

`=FORECAST.LINEAR(C13,D4:D12,C4:C12)`

Here, **C13 **is the month on which we want to determine the demand, **D4:D12 **is the range of demands, and **C4:C12 **is the range of months that have available demands.

➤ Press **ENTER**.

Finally, you will get the forecasted demand for ** Oct-21**.

**Read More:** **Forecasting in Excel Using FORECAST Function & Auto Fill Handle Tool**

**Similar Readings**

**How to Forecast Growth Rate in Excel (2 Methods)****How to Forecast Sales Growth Rate in Excel (6 Methods)**

__Method-3__: Weighted Moving Average Forecasting

Here, we will use the weighted moving average forecasting method to determine the demand in ** Oct-21**. To do this we need some weighted factors which we have gathered as

**,**

*W1***, and**

*W2***following the dataset.**

*W3*The latest demand value has more significance than the oldest demand value. So, here we will multiply the latest value with a factor of

**0.6**then the second latest value will be multiplied by

**0.4**and the oldest value will be multiplied by

**0.2**for its less significance in calculating this 3-point moving average.

** Steps**:

➤ Type the following formula in cell

**D13**.

`=D12*C17+D11*C16+D10*C15`

Here, **D12 **is the latest demand value in *September 2021*, **C17 **is the weight factor **0.6 **to multiply with the value in **D12**, then **D11 **is the 2nd latest demand in *August 2021*, **C16 **is the weight factor **0.4 **to multiply with the value in **D11 **and finally, **D10 **is the oldest demand in *July 2021*, **C15 **is the weight factor **0.2 **to multiply with the value in **D10**.

➤ Press **ENTER**.

Eventually, we will be able to have the forecasted demand for ** Oct-21**.

**Read More:** **How to Do Budgeting and Forecasting in Excel (2 Suitable Ways)**

## Comparison Between Time Series Forecasting Methods with Graphical Representation

Here, we have shown the comparison between the forecasted results using the ** Exponential**,

**, and**

*Linear***Weighted Moving Average**methods along with a graphical presentation of this comparison. For

**Weighted Moving Average**we are getting the highest demand than the other two methods.

## Practice Section

For doing practice by yourself we have provided a** Practice** section like below in a sheet named **Practice**. Please do it by yourself.

## Conclusion

In this article, we tried to cover the time series forecasting methods in Excel. Hope you will find it useful. If you have any suggestions or questions, feel free to share them in the comment section.