Cumulative frequency is a useful statistical measure in the business sector for various reasons. By calculating cumulative frequency, you can see how many observations fall within a given range of values. This information can be helpful for various tasks, like finding outliers, comparing datasets, and predicting future trends based on previous trends. Apparently, finding the cumulative frequency value may seem intricate, but Excel makes it fast and easy. In this article, I will show you 2 ways how you can calculate cumulative frequency in Excel.
What is Cumulative Frequency?
Cumulative frequency is a statistical term that refers to the total number of times a value or a range of values occur up to a certain point in a frequency distribution, including all values that come before it. In other words, it is the running total of the frequencies of all the values up to a certain point in a frequency distribution.
For example, if we have a data set with values of 3, 5, 7, 8, and 10, and their corresponding frequencies are 2, 3, 1, 4, and 2, then the cumulative frequency of the value 8 would be the sum of the frequencies of all the values that come before it, which is 2 + 3 + 1 + 4 = 10.
Cumulative Frequency Formula
The formula for cumulative frequency:
Cumulative Frequency = Sum of all frequencies up to and including the current frequency
This can be expressed mathematically as:
CF(i) = ∑f(j) where j = 1 to i
- CF(i) is the cumulative frequency for the i-th observation.
- f(j) is the frequency of the j-th observation.
- the summation (∑) is taken over all observations up to and including the i-th observation.
Introduction to the Dataset
In this dataset, I have a long list of transactions from the last year of my company. Both the regularity of transactions and the volume of transactions varied from month to month. Here, just a small portion of the transactions are shown in the visual below.
Now let me show you how I calculate cumulative frequency in Excel.
Easiest Way to Calculate Cumulative Frequency in Excel
Calculating the cumulative frequency will help me determine the amount of transacted money by the end of November. I will be using the Pivot Table to measure the cumulative frequency. The Running Total In is a great feature of the pivot table that works fine to calculate the cumulative frequency. Also, using the Running Total In feature is quicker than using the formula for cumulative frequency.
Step_1: First, select the cell range A1:B43.
Step_2: Now go to the Insert tab.
Step_3: Select PivotTable from the Tables group.
The PivotTable dialog box will pop up on the Excel sheet.
Step_3: Now select Existing Worksheet.
If you want the pivot table on a separate sheet, select New Sheet.
Step_4: Click on cell D1 in the existing sheet as the Location.
Step_5: After that, hit OK.
This will bring up the PivotTable Field Task Pane on the right side of the worksheet.
Step_6: Now drag Months from the PivotTable Field List and drop it inside the Rows area.
Step_7: Now select Transaction Amount from the Field List and drag it to the Values area.
You will see a table formed in your worksheet like the one below.
Note: In the raw dataset, the months were randomly arranged. The months were automatically adjusted once I applied the pivot table, going from earlier months to later months of the year. But if you are dealing with numerical data rather than months, it would be better to arrange the data in ascending order. To do that, use the Sort A to Z feature from the Data tab.
Step_8: Now right-click on the Sum of Transaction Amount header.
Step_9: Then hit the command Value Field Settings.
The Value Field Settings will show up instantly.
Step_10: In the Custom Name box, enter a name for the column.
I entered Cumulative Frequency as the column header as I will be calculating cumulative frequency.
Step_11: After that, select the tab Show Values As.
Step_12: Click on Running Total In from the Show Values As drop-down menu.
Step_13: Finally, hit the OK button.
Final Result >
The cumulative frequency calculation results are here in column E.
Additional Steps: Calculate Cumulative Frequency Percentage
If you need to calculate the cumulative frequency percentage, follow the below steps.
Step_1: Add a new column beside the existing dataset.
I placed the new column on column F and named it % Cumulative Frequency.
Step_2: Type the following formula in cell F2.
Step_3: Press the ENTER key.
- E2 is the current transaction amount.
- E7 is the total transaction amount. I used the dollar sign ($) before the column and row numbers to add an absolute cell reference.
Step_4: Now copy the formula by dragging the Fill Handle icon from cell F2:F7.
Step_5: Next, select the cell range F2:F7.
Step_6: After that, go to the Home tab.
Step_7: Click on the % (percentage) icon from the Number group.
Final Result >
Columns E and F show the cumulative frequency and % cumulative frequency in the image below.
Lastly, I removed the row of Grand Total as it was unnecessary for cumulative frequency. I also used Format Painter. However, you can skip these steps.
Alternative Way: Using Simply Formula to Calculate Cumulative Frequency in Excel
You can calculate the cumulative frequency by following the basic formula for cumulative frequency. Follow the step-by-step guide to calculating cumulative frequency in Excel.
Step_1: First, create a new column beside the dataset.
I named the column Cumulative Frequency.
Step_2: Next, select the column Transaction Amount.
Step_3: Now go to the Data tab.
Step_4: Click on the Sort A to Z icon from the Sort & Filter group.
This will rearrange the cell range in ascending order.
The Sort Warning message may show up.
Step_5: Select the option Expand the selection.
Step_6: Hit the OK button.
Step_7: Next, write the formula in cell C2.
Step_8: Press the ENTER key.
Step_9: Now type the formula in cell C3.
Step_10: Press ENTER.
Step_11: Now double-click on the Fill Handle icon on the right bottom corner of cell C3.
The Fill Handle will copy the formula from cell C3 to the rest of the cells in the column.
Final Result >
This formula to calculate cumulative frequency also gives the same result as the previous method. The final result in both methods is $5,407,000.
However, if you want to group the data, it is better to use the pivot table. The pivot table is also more effective if your dataset is very long.
Cumulative Frequency Table
Generally, we use cumulative frequency tables to analyze continuous variables such as age, height, or weight.
The cumulative frequency tables contain two key elements (class and frequency).
- Class is the intervals or ranges of values of the variable that are being analyzed. The class has a lower and an upper limit.
- Frequency is the number of observations that fall within each class. This can be an absolute frequency or a relative frequency.
Cumulative Frequency Table Example
There is a range of time in column A, and the frequency is in column B.
Now, I will complete the cumulative frequency table.
So first, I inserted the following formula in cell C2.
Then I pressed ENTER to apply the formula.
Next, I applied another formula in cell C3.
Then hit ENTER.
Then I copy the formula by dragging the Fill Handle icon into the cell range C3:C8.
This is how you can also complete a cumulative frequency table.
I really hope that you now have a general understanding of what cumulative frequency is and how to calculate it using Microsoft Excel. If you wish to know more about Excel, please visit our blog page at any time. Furthermore, if you encounter any confusion regarding this subject, do not hesitate to ask questions in the comment section. Thank you!
- How to Calculate Total Revenue in Excel [Free Template]
- How to Calculate Profitability Index in Excel [Free Template]
- How to Find Interquartile Range (IQR) in Excel [Free Calculator]
- Calculate Percentage of a Number in Excel [4 Cases Explained]
- Calculate 3 Types of Profit Margin in Excel
- 2 Ways to Calculate Percentage Increase in Excel