# How to Calculate Variance In Excel

By gobrain

Jan 1st, 2024

Variance is a statistical tool used to evaluate the dispersion of data in a set. It gives information about how much the individual data points differ from the mean of the set.

And, excel is a widely used software for analyzing datasets, making it important to know how to calculate variance in a spreadsheet. Let's examine the formula for variance and then its application in Excel.

## Formula For Calculating Variance

**V = (Σ(x - μ)^2 / n)**

Where:

- x is a data in set,
- μ is the mean,
- n is the number of values in set
- Σ is the sum of.

### Population vs Sample in Variance

Due to the difficulty in obtaining data for the entire population, a sample is taken and the variance is calculated. As a result, there will be a slight modification in the formula, as follows:

**V = (Σ(x - μ)^2 / (n-1))**

## Calculate Variance In Excel

In Microsoft Excel, you can use the VAR.S function to find the sample standard deviation of a dataset. The formula is:

**=VAR.S(range)**

Where range represents the group of values for which you want to determine the variance. For example, if your data is located in the range A1:A10, the formula to calculate the variance would be:

**=VAR.S(A1:A10)**

If you want to calculate the population variance, the formula is:

**=VAR.P(range)**

## Conclusion

In this brief guide, we have demonstrated the formulas for population and sample variance and how to calculate them using Microsoft Excel, a widely used spreadsheet for data analysis

Thank you for reading.