Calculate Total Sales in Excel With An Array Formula

An Array Formula performs an Excel operation (math, comparative, join, or function argument) on an array or range of data.  This could be a range of cells, a worksheet reference, or a defined name. One of the most popular uses of an array formula is to calculate Total Sales in Excel. If we had to calculate Total Sales in Excel the normal way, we would have to create a “helper column” for the Totals column and then enter a formula to Sum all the Totals. Using an Array Formula we skip the “helper column” and just enter one formula only.  Quick and simple!

Key Takeaways:

• Dynamic Calculation: Array formulas allow you to perform calculations on multiple rows and columns of data simultaneously, making it easier to calculate total sales across a dataset without additional helper columns.
• Uses SUMPRODUCT Function: A common method to calculate total sales is using the SUMPRODUCT function, which multiplies corresponding values (e.g., quantity and price) and sums them up in a single formula.
• Array Formulas Use CSE (Ctrl + Shift + Enter): For older versions of Excel, array formulas must be entered using Ctrl + Shift + Enter, enclosing the formula in curly braces {}. This ensures the array formula is calculated correctly.
• Efficient for Large Datasets: Array formulas eliminate the need to create intermediate calculations in separate columns, making them highly efficient for analyzing large datasets.
• Excel 365 and Excel 2021 Simplify Arrays: In modern versions like Excel 365 and 2021, array formulas are dynamic, meaning you don’t need to use Ctrl + Shift + Enter anymore, as they calculate automatically. This simplifies the process significantly.

Foundation of Array Formulas in Excel

What is the Array Formula?

With array formulas, you’re stepping into an area of Excel that combines the power of mathematics with the capability to handle bulk data effortlessly. Unlike standard formulas, arrays can process a multitude of values simultaneously, making them especially beneficial when crunching numbers across large datasets.

Imagine having a Swiss Army knife in your Excel toolkit; that’s precisely what array formulas offer – versatility and efficiency.

Single-cell vs Multi-cell Array Formulas: Understanding the Difference

Single-cell array formulas are the go-to when you need to perform operations on multiple data sets and desire a single outcome. Picture yourself needing to find the average of numerous cells—it’s this kind of scenario where a single-cell array works wonders.

{=SUM(B2:B6*C2:C6)}

Switching gears, multi-cell array formulas shine when you’re eyeing multiple results from your data manipulations. If you’re calculating sums for every row in a spreadsheet, a multi-cell array formula elegantly and efficiently gives you individual totals all in one swoop. They can transform how you handle complex data puzzles, offering clarity and concise results where it might otherwise seem daunting.

=B2:B6*C2:C6

 

Starting with the Basics: What Are Array Formulas?

The Anatomy of an Array Formula

Peek under the hood of an array formula, and you’ll discover its core consists of three integral components: the array itself, a function or operation that crunches the data, and, in pre-Excel 365 versions, the keystroke combo that brings it to life—Control + Shift + Enter (CSE). The array could be a range of cells you’re analyzing, the function might be a SUM or AVERAGE, and the CSE combo is the spark that makes the formula compute over the array.

An example might look like {=SUM(B2:B6*C2:C6)}, where Excel multiplies corresponding values from two columns before summing them up.

Remember that the curly braces are not manually typed but signify that you’ve activated the mystical array formula realm via CSE—except in Excel 365, where they’re part of standard functionality.

Movements Through Data Transformation with Arrays

Array formulas are like data alchemists, masterfully transforming rows of raw information into insightful golden nuggets. They work their magic by performing simultaneous operations across multiple data points, unearthing trends and patterns that were not immediately obvious.

For instance, say you’re looking at sales data and want to see how monthly sales figures compare against the annual average. An array formula can subtract each month’s sales from the annual average in one seamless motion across the whole data set, spotlighting months that performed above or below par. This allows you to navigate through your data’s transformation journey, from a simple spreadsheet to a treasure trove of insights.

Calculate Total Sales in Excel With An Array Formula

Let’s do an example of an Array Formula to Calculate Total Sales in Excel for various products.

Follow the step-by-step guide below on How to calculate Total Sales in Excel:

STEP 1: Enter the SUM formula =SUM(

STEP 2: Select the array/range of data for the UNITS SOLD, enter the multiplier sign * and select the array/range of the data for the UNIT PRICE:

=SUM(C13:C16*D13:D16)

STEP 3: Instead of pressing ENTER to evaluate the formula, you need to press CTRL+SHIFT+ENTER to turn the formula into an Array Formula which will look like this:

{=SUM(C13:C16*D13:D16)}

STEP 4: By pressing F9 on the selected formula array will give you the resulting array of numbers (press CTRL+Z to get out of this mode when you are done checking the formula results):

If we had to get the above result using a non-Array Formula we would have to create a helper column which multiplies UNITS SOLD by UNIT PRICE and then enter the SUM formula to get the same result.  This is double the work!

Frequently Asked Questions

How can I calculate total sales in Excel using an array formula?
To calculate total sales with an array formula, use the SUMPRODUCT function. For example, if column A contains quantities and column B contains prices, the formula =SUMPRODUCT(A2:A10, B2:B10) will multiply each pair of quantity and price and then sum the results to give you the total sales.

Do I need to press Ctrl + Shift + Enter to use an array formula in Excel?
In older versions of Excel (2019 or earlier), you must press Ctrl + Shift + Enter when entering an array formula, which will enclose it in curly braces {}. However, in modern versions like Excel 365 or Excel 2021, this step is no longer necessary, as these versions support dynamic array formulas.

What are the benefits of using an array formula for total sales calculations?
Array formulas allow you to calculate total sales without the need for helper columns. They perform calculations on multiple rows or columns simultaneously, making the process faster, more efficient, and less error-prone, especially for large datasets.

What happens if the ranges in my array formula are mismatched in size?
If the ranges in your array formula (e.g., quantities and prices) are mismatched in size, Excel will return a #VALUE! error. Ensure that both ranges have the same number of rows and columns for the formula to work correctly.

Can I use array formulas for conditional total sales calculations?
Yes, you can use array formulas for conditional calculations. For example, to calculate total sales only for a specific product category, you can use an array formula like =SUMPRODUCT((C2:C10="Category1")*(A2:A10)*(B2:B10)), where column C contains the product category. This formula multiplies only the rows that match the condition and sums the results.