What is the difference between GEOMEAN and AVERAGE?

AVERAGE sums all values and divides by count (arithmetic mean), suited for additive data. GEOMEAN multiplies all values and takes the nth root (geometric mean), ideal for multiplicative data like growth rates. For instance, a 20% gain followed by a 30% gain compounds to 56% total, not 50%; GEOMEAN correctly reflects the ~24.9% average growth rate.

Can GEOMEAN handle zero or negative numbers?

No. GEOMEAN returns #NUM! if any value is zero or negative, because the geometric mean involves roots and products that are undefined for non-positive numbers. If your dataset contains zeros or negatives, filter them out first or use conditional array formulas to exclude them from the calculation.

Why is GEOMEAN better than AVERAGE for investment returns?

Investment returns compound multiplicatively. A 50% gain followed by a 50% loss does not net to 0% — it actually loses money (start with 100, gain 50 to reach 150, lose 50% to fall to 75). GEOMEAN correctly computes the equivalent steady annual return that produces the same outcome.

What happens if I pass a single number to GEOMEAN?

GEOMEAN returns that number unchanged. Mathematically, the nth root of a single value equals the value itself. While rarely useful, it does not cause an error and simply fulfills the formula structure.

GEOMEAN function

Computes the geometric mean of positive numbers by taking the nth root of their product, used for averaging growth rates and percentage-based changes.

=GEOMEAN(number1, ...)

Generate a GEOMEAN formula

Describe what you need. The generator will reach for GEOMEAN where GEOMEAN is the right tool, and tell you when it is not.

Arguments

How GEOMEAN reads its arguments

Argument	Required	Description
number1	Required	Required. A positive numeric value, or a range/array of positive numbers. Zero and negative values cause a #NUM! error.
...	Repeating	Optional. Additional positive numeric values or ranges. You can supply up to 255 arguments total; empty cells are ignored.

Returns

A positive number representing the geometric mean of all supplied values.

Availability

Excel: All · Google Sheets: Supported

Worked examples

1. Calculate average quarterly revenue growth rate

Quarter	Revenue	Growth Factor
Q1	$60,000	—
Q2	$72,000	1.2
Q3	$93,600	1.3
Q4	$107,640	1.15

=GEOMEAN(1.2, 1.3, 1.15)

Result: 1.2145 (≈21.45% average quarterly growth)

The quarterly growth rates are 1.2 (20%), 1.3 (30%), and 1.15 (15%). The geometric mean of 1.2145 represents the single consistent growth rate that, if applied each quarter, yields the same total result. This is more accurate than a simple arithmetic average (22.17%) for multiplicative data where compounding matters.

2. Find the central unit price across all orders

OrderID	Region	Rep	UnitPrice
O001	North	Alice	$12
O002	South	Bob	$15
O003	East	Carol	$20
O004	West	David	$18
O005	North	Alice	$22
O006	South	Bob	$16
O007	East	Carol	$25
O008	West	David	$14

=GEOMEAN(12, 15, 20, 18, 22, 16, 25, 14)

Result: 17.36

The eight prices range from $12 to $25. The geometric mean of $17.36 is slightly lower than the arithmetic average ($17.88) and better represents the central tendency for proportional or ratio-based analysis. GEOMEAN naturally dampens the effect of extreme outliers in multiplicative contexts.

3. Determine typical monthly volume for a sales region

Month	Region	Units Sold
January	North	50
February	North	45
March	North	55

=GEOMEAN(50, 45, 55)

Result: 49.82

The North region sold 50, 45, and 55 units across three months. The geometric mean of 49.82 units represents the steady monthly volume that, held constant, would produce the same cumulative output. Use this when analyzing volume trends where percentage fluctuations matter more than absolute differences.

Common errors

Which GEOMEAN error are you seeing?

Error	Why it happens	How to fix it
#NUM!	GEOMEAN cannot calculate with zero or negative numbers. The geometric mean is defined only for positive values since it involves taking roots of products; a negative input or zero breaks the mathematical foundation.	Filter or exclude zero and negative values before passing to GEOMEAN. Ensure all cells in the range contain positive numbers, or use a helper column to clean data. For conditional GEOMEAN, use an array formula like =GEOMEAN(IF(A1:A10>0,A1:A10)).
#VALUE!	Non-numeric data such as text, dates formatted as text, or boolean values (TRUE/FALSE) are included in the range or as arguments.	Verify that all arguments are numeric values or ranges containing only numbers. If a column has mixed types, reference only numeric cells, or use a helper column to convert text to numbers. Empty cells are safely ignored.
#REF!	A cell reference within the GEOMEAN formula points to a cell or range that has been deleted, moved to a different sheet, or is otherwise invalid.	Audit all cell references in the formula to ensure they point to existing data. Use the Name Box or Find & Replace to locate broken references, or re-enter the formula with correct cell addresses.

Tips and when to use something else

Use GEOMEAN for averaging growth rates, investment returns, and any data where percentage changes compound over time. Use AVERAGE instead for simple additive totals, averages of independent measurements, or when data is not ratio-based.
GEOMEAN requires all values to be strictly positive. If your dataset includes zeros or negatives, create a helper column to filter them out before passing to GEOMEAN, or use IF within an array formula to conditionally include values.
The geometric mean is always less than or equal to the arithmetic mean; they are equal only when all input values are identical. For right-skewed distributions or datasets with outliers, GEOMEAN often better represents the central tendency than AVERAGE.
GEOMEAN is mathematically sensitive to scale and range. Very large or very small values can shift results significantly, so validate that your input data makes logical sense for the scenario and that mixing incompatible units (e.g., percentages and absolute values) is intentional.

Related functions

AVERAGEAVERAGE calculates the arithmetic mean of numbers, ignoring text and logical values; returns a single numeric value representing the average.MEDIANMEDIAN returns the middle value in a sorted list of numbers, or the average of the two middle values if the count is even.LARGELARGE returns the k-th largest value in an array, where k=1 is the maximum, k=2 is the second-largest, and so on.SMALLSMALL returns the k-th smallest value from an array, where k=1 gives the minimum and higher k values give progressively larger results.COUNTIFCounts cells in a range that meet a specific criterion, returning a number — use it to tally matching rows like employee counts by department.

Frequently asked questions

What is the difference between GEOMEAN and AVERAGE?: AVERAGE sums all values and divides by count (arithmetic mean), suited for additive data. GEOMEAN multiplies all values and takes the nth root (geometric mean), ideal for multiplicative data like growth rates. For instance, a 20% gain followed by a 30% gain compounds to 56% total, not 50%; GEOMEAN correctly reflects the ~24.9% average growth rate.
Can GEOMEAN handle zero or negative numbers?: No. GEOMEAN returns #NUM! if any value is zero or negative, because the geometric mean involves roots and products that are undefined for non-positive numbers. If your dataset contains zeros or negatives, filter them out first or use conditional array formulas to exclude them from the calculation.
Why is GEOMEAN better than AVERAGE for investment returns?: Investment returns compound multiplicatively. A 50% gain followed by a 50% loss does not net to 0% — it actually loses money (start with 100, gain 50 to reach 150, lose 50% to fall to 75). GEOMEAN correctly computes the equivalent steady annual return that produces the same outcome.
What happens if I pass a single number to GEOMEAN?: GEOMEAN returns that number unchanged. Mathematically, the nth root of a single value equals the value itself. While rarely useful, it does not cause an error and simply fulfills the formula structure.

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Reviewed 2026-09-17