What is Weighted Average?
Weighted average is a calculation that takes into account the varying importance of different values in a dataset.
Unlike a simple arithmetic average where all values contribute equally, a weighted average assigns different levels of importance (weights) to each value. This makes it particularly useful when some data points should have more influence on the final result than others.
Common applications include calculating grade point averages (where different courses have different credit hours), investment portfolio returns (where different investments have different sizes), and statistical analysis where observations have varying reliability.
Weighted Average Formula
To calculate the weighted average manually, follow these steps:
In other words: multiply each value by its weight, sum all the products, then divide by the sum of all weights. For example, if you have values 80 and 90 with weights 2 and 3: (80×2 + 90×3) / (2+3) = (160 + 270) / 5 = 86.
When to Use Weighted Average
Weighted averages are essential in many real-world scenarios:
Academic Grades
When calculating your GPA, courses with more credit hours carry more weight. A 4-credit course affects your average more than a 1-credit course.
Investment Returns
Portfolio performance is calculated as a weighted average of individual investment returns, where weights are the amount invested in each asset.
Survey Analysis
Survey responses can be weighted to ensure the sample is representative of the target population, giving more importance to underrepresented groups.
Grade Average Calculator
Looking to calculate your grade point average? Our grade calculator is designed specifically for students, supporting weighted grades and various grading systems.
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