How to Calculate Moving Averages in Excel

By Stephen L. Nelson and E. C. Nelson from Excel Data Analysis For Dummies,
2nd Edition
The Data Analysis command provides a tool for calculating moving and exponentially
smoothed averages in Excel. Suppose, for sake of illustration, that youve collected
daily temperature information. You want to calculate the three-day moving average
the average of the last three days as part of some simple weather forecasting.
To calculate moving averages for this data set, take the following steps.

1.

To calculate a moving average, first click the Data tabs Data Analysis
command button.

2.

When Excel displays the Data Analysis dialog box, select the Moving
Average item from the list and then click OK.
Excel displays the Moving Average dialog box.

3.

Identify the data that you want to use to calculate the moving average.
Click in the Input Range text box of the Moving Average dialog box. Then identify
the input range, either by typing a worksheet range address or by using the
mouse to select the worksheet range.
Your range reference should use absolute cell addresses. An absolute cell
address precedes the column letter and row number with $ signs, as in
$A$1:$A$10.
If the first cell in your input range includes a text label to identify or describe your
data, select the Labels in First Row check box.

4.

In the Interval text box, tell Excel how many values to include in the
moving average calculation.
You can calculate a moving average using any number of values. By default,
Excel uses the most recent three values to calculate the moving average. To
specify that some other number of values be used to calculate the moving
average, enter that value into the Interval text box.

5.

Tell Excel where to place the moving average data.

Use the Output Range text box to identify the worksheet range into which you
want to place the moving average data. In the worksheet example, the moving
average data has been placed into the worksheet range B2:B10.

6.

(Optional) Specify whether you want a chart.

If you want a chart that plots the moving average information, select the Chart
Output check box.
7.

(Optional) Indicate whether you want standard error information

calculated.
If you want to calculate standard errors for the data, select the Standard Errors
check box. Excel places standard error values next to the moving average
values. (The standard error information goes into C2:C10.)

8.

After you finish specifying what moving average information you want
calculated and where you want it placed, click OK.
Excel calculates moving average information.

Note: If Excel doesn't have enough information to calculate a moving average for a
standard error, it places the error message into the cell. You can see several cells
that show this error message as a value