We can use a formula that is based on the **SUM function** to **calculate the RUNNING average** for a set of values. The running average finds the average continuously from previous data points. The steps below will walk through the process.

*
Figure 1- How to Find a Running Average in Excel*

**Formula**

**=SUM($D$4:D4)/SUM($C$4:C4)**

**Setting up the Data**

We will calculate the **running average **as revenue divided by sales** in figure 2.**

**The months will be entered into Column B****Column C and D**contain the**Sales**and**Revenue**respectively- The
**running average**will be returned in**Column F**

*Figure 2 – Setting up the Data*

**Running Average**

- We will click on
**Cell F4** - We will insert the formula below into
**Cell F4**

**=SUM($D$4:D4)/SUM($C$4:C4)** - We will press the
**enter**key

* Figure 3- Running Average*

- We will click on
**Cell F4**again - We will
**double click**on the fill handle tool which is the small plus sign you see at the bottom right of**Cell F4.**Select and drag down to copy the formula to**Cell F15**.

* Figure 4- Result of Running Average*

**Explanation**

If we consider **Cell F6, **the result is calculated in this manner:

**$120+$300+$80**/**$1000+$1500+$950**

**=0.144927536**

The next average is returned considering the next four values and so on.

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