Forum Discussion
Formula for calculating weightings
I currently have a sum of £230,000 which is made up of shares invested by 5 companies at £70,000, £50,000, £45,000, £35,000 and £30,000. The percentage value of these shares is easy to calculate. However, if I want to divide the £230,000 between 4 companies based on the current percentages I will get a gap of c 15%. Is there a formula to split the £230,000 between 4 based on the weightings each has without losing the 15%. Many Thanks
Well, rather than dividing each of the 5 shares by the total of 230K, divide each of the four shares you selected by the sum of these four. four instance:
4 Replies
Well, rather than dividing each of the 5 shares by the total of 230K, divide each of the four shares you selected by the sum of these four. four instance:
Yes. If you want to preserve the original weighting, the standard approach is proportional allocation:
Allocation = Total amount × (company's weighting ÷ sum of the weightings being allocated).
So if you remove one company, first remove its £ amount from the weighting total, then recalculate the percentages for the remaining four. The new percentages will add up to 100%, so there shouldn't be a 15% gap. This is the same basic principle used in many practical calculators and estimation tools, including https://calcpave.com/, where quantities are calculated from weighted engineering inputs.
Thank you for taking the time to provide that solution, have a great day. Steve
- Thank you so much, that's very helpful.
