The Excel GEOMEAN function returns the geometric mean for a set of numeric values. Geometric mean can be used to calculate average rate of return with variable rates.
Syntax:=GEOMEAN (number1, [number2], …)
The GEOMEAN function syntax has the following arguments:
- Number1, number2, … Number1 is required, subsequent numbers are optional. 1 to 255 arguments for which you want to calculate the mean. You can also use a single array or a reference to an array instead of arguments separated by commas.
Example: Let’s look at some Excel GEOMEAN function examples and explore how to use the GEOMEAN function as a worksheet function in Microsoft Excel:
Based on the Excel spreadsheet above, the following GEOMEAN examples would return:
Cells containing Text values, logical values, or no value are ignored by Excel GEOMEAN Function.
- Arguments can either be numbers or names, arrays, or references that contain numbers.
- Logical values and text representations of numbers that you type directly into the list of arguments are counted.
- If an array or reference argument contains text, logical values, or empty cells, those values are ignored; however, cells with the value zero are included.
- Arguments that are error values or text that cannot be translated into numbers cause errors.
- If any data point ≤ 0, GEOMEAN returns the #NUM! error value.
The equation for the geometric mean is: