Calculate geometric mean
=GEOMEAN(number1, [number2], ...)
| Parameter | Description |
|---|---|
number1 |
First value or reference. |
number2 |
[optional] Second value or reference. |
For example, given two numbers, 4 and 9, the long-hand calculation for the geometric mean is 6:
=(4*9)^(1/2)
=(36)^(1/2)
=6
The GEOMEAN function returns the same result:
=GEOMEAN(4,9) // returns 6
By contrast, the arithmetic mean is 6.5:
=(4+9)/2=6.5
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
=GEOMEAN(D6:D10)-1