Calculate rate interest average

Question

Hi,&nbsp;Here's the problem&nbsp;A (different funds)&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; B (interest this year)1000$&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 5%2000$&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 10%5000$&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; 13%&nbsp;C (total portfolio)&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; D (portfolio average interest)8000$&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;???&nbsp;I'm trying to get the average interest rate. But the portfolio is not equally divived so I can't use the simple Average formula in Excel.&nbsp;Thank you in advance&nbsp;

gianluca principato · Answer

You can use the weighted average.

preagan · Answer

Hello&nbsp;touzels,&nbsp;What you are calculating is a weighted average interest rate. The following formula would calculate the weighted average of the three portfolios that you provided:

gianluca principato · Answer

Or: =SUMPRODUCT(C2:C4,B2:B4)/SUM(B2:B4)

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Calculate rate interest average

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