# Calculate the Average Difference or Average of Differences

This is a discussion on Calculate the Average Difference or Average of Differences within the Excel Questions forums, part of the Question Forums category; Thanks for your patience! I have a row with amounts from the previous 10 years of budget amounts (i.e., c1 ...

1. ## Calculate the Average Difference or Average of Differences

I have a row with amounts from the previous 10 years of budget amounts (i.e., c1 = 100 d1 = 200 ...) I also have the same years actual amounts below them, (i.e., c2 = 90 d2 = 150 ...) and the next row calculates the difference, (i.e., c3 = c1-c2) and a percentage change calculated for each two years i.e., d4 = (c1-d1)/c1, d5 = (d1-e1)/d1 ...

that part is simple but, I want to get an average of the percentage changes over the ten years. I figured out two ways of doing it and not surprisingly come up with two different answers. Which is correct:

=AVERAGE(d4:m14)

OR

=((c3-m14)/c3)/10

Any help is appreciated

2. ## Re: Calculate the Average Difference or Average of Differenc

Hi:

Seems as though you are averaging two different results...What other data is in columns e thru m

It might be a bit more helpful to see some more of your sample data....to get a better understanding

You can use the colo utility found under the text message box

plettieri

3. ## Re: Calculate the Average Difference or Average of Differenc

Plettieri,

I figured it out using a third method to smooth the averages. Thanks for taking the time to respond. I've learned more from this message board than all the training classes I've taken combined!

Thanks again

4. ## Re: Calculate the Average Difference or Average of Differenc

Hi:
Care to share your answer...Being a "beancounter" myself, I am curious to know....

plettieri

5. ## Re: Calculate the Average Difference or Average of Differenc

Plettieri,

It is quite simple. Say cell B5 has fiscal year (fy) 93/94 info & cell L5 has fy 03/04 info then the formula is:

=(L5/B5)^(1/10)-1

You will get an average over the 10 years

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