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#Statistical

GEOMEAN

Excel Functions

Calculate geometric mean

Syntax

EXCEL
=GEOMEAN(number1, [number2], ...)

Arguments

Parameter Description
number1 First value or reference.
number2 [optional] Second value or reference.

Return Value

Calculated mean

Details

The Excel GEOMEAN function calculates the geometric mean. Geometric mean is the average of a set of products — technically, the nth root of n numbers. The general formula for the geometric mean of n numbers is the nth root of their product. The equation looks like this: For example, given two numbers, 4 and 9, the long-hand calculation for the geometric mean is 6: The GEOMEAN function returns the same result: By contrast, the arithmetic mean is 6.5: The GEOMEAN function takes multiple arguments in the form number1, number2, number3, etc. up to 255 total. Arguments can be a hardcoded constant, a cell reference, or a range. Often, a single range or array is used instead of multiple arguments, as seen in the example worksheet.

Examples

Example 1

For example, given two numbers, 4 and 9, the long-hand calculation for the geometric mean is 6:

EXCEL
=(4*9)^(1/2)
=(36)^(1/2)
=6
Example 2

The GEOMEAN function returns the same result:

EXCEL
=GEOMEAN(4,9) // returns 6
Example 3

By contrast, the arithmetic mean is 6.5:

EXCEL
=(4+9)/2=6.5
Examples

In the example shown, GEOMEAN is used to calculate a compound annual growth rate. To do this we use the growth factor values in column D in the GEOMEA

EXCEL
=GEOMEAN(D6:D10)-1

See Also

AVERAGE TRIMMEAN HARMEAN RRI