Excel GEOMEAN function is valuable and calculates the geometric mean of an array of numeric values. With GEOMEAN, you can calculate the average rate of return with variable rates. The geometric mean is a calculation of mean that provides a value of number set. It can only be used for positive values.
The formula calculates the geometric mean of the set of different values such as y1, y2, …, yn:
The Formula of Excel GEOMEAN Function
The formula of Excel GEOMEAN function is:
The number whole geometric mean is to be calculated arguments one or more positive numerical values or a set of numeric values. In the existing version of Excel (from 2007 onwards), excel GEOMEAN function accept almost 255 arguments. However, the function accepts only 30 arguments in Excel 2003 version. Besides, each number argument can be a set of numeric values or range of cells that may contain different values.
In this example, I have used excel GEOMEAN function to measure the geometric mean of the data set contained in C5: C8. The result was 0.10668192.
Figure 1 Example of Excel GEOMEAN Function
Excel GEOMEAN Function Errors
Following are the common errors that you may get from excel GEOMEAN function
- #NUM! Occurs if negative numeric values are used.
- #VALUE! Occurs if non-numeric values are used.
- Arguments can be names, numbers, sets, or references that contain numerical values.
- The geometric mean is always equal to or less than the arithmetic mean.
- Empty cells and cells that contain logical values or text are ignored.