How to Calculate Weighted Average with Sales and Margin

[Nanakwame]

Hi Power BI Experts,

I am looking to create the weighted average instead of regular average. I do have sales budget with margin budget available for the calculation. i am looking to get the weighted average of either the margin or sales. The idea is that each warehouse sales budget is not the same therefore it should be considerd for the weighted average calculation.  Please see the table below. 

[AlexisOlson · Accepted solution]

The basic pattern looks like this:

AvgMargin =
DIVIDE (
    SUMX ( Table1, Table1[Margin] * Table1[Sales] ),
    SUMX ( Table1, Table1[Sales] )
)

[AlexisOlson]

What is the result you're expecting? Average Margin weighted by Sales?

[Nanakwame]

Yes average Margin weighted by sales or vice versa. 

[AlexisOlson · Accepted solution]

The basic pattern looks like this:

AvgMargin =
DIVIDE (
    SUMX ( Table1, Table1[Margin] * Table1[Sales] ),
    SUMX ( Table1, Table1[Sales] )
)

[Nanakwame]

Thank you Sir. That worked. What if i will like the weighted average amount. do i just use the same function but different denominator?

[AlexisOlson · Accepted solution]

If you want the average sales weighted by margin rather than average margin weighted by sales, swap the roles of Margin and Sales. In this case, that can be done just by changing the denominator to use Margin instead of Sales (since they're both already present in the numerator, swapping the columns there doesn't change anything since multiplication is commutative).