Weighted Average
An average where each period counts as much as the weight you give it. Every period starts with an equal weight; give a period more weight to let it count for more, for example when the latest year is the best guide to the future.
- How it's worked out
- (Value1 × Weight1 + Value2 × Weight2) / Total Weight
- Which way is better
- Read it in contextNeither higher nor lower is better on its own. Read it alongside the measures around it.
Written by Mandy Walker, founder of Focus on Cash. Updated October 2026. This explanation comes from the glossary inside Focus on Cash, so it matches the words you see in the app.
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