Monthly Average Spending
Calculate your average spending per category over multiple months to spot trends and set realistic budgets.
=AVERAGEIF(category_range, "Category", amount_range) How It Works
AVERAGEIF calculates the average of values that meet a specific condition. For budgeting, this helps you understand typical spending in each category - much more useful than a single month’s data.
Syntax
=AVERAGEIF(range, criteria, average_range)- range: The cells containing categories or months
- criteria: What to match (category name or condition)
- average_range: The cells containing amounts to average
Example
| Month | Category | Amount |
|---|---|---|
| Jan | Groceries | $420 |
| Jan | Dining | $180 |
| Feb | Groceries | $385 |
| Feb | Dining | $220 |
| Mar | Groceries | $450 |
| Mar | Dining | $165 |
Formula: =AVERAGEIF(B2:B7, "Groceries", C2:C7)
Result: $418.33
Practical Uses
Average by Category
Find your typical spending in each budget category:
=AVERAGEIF(Categories, "Entertainment", Amounts)Average by Month
Calculate average daily spend for a specific month:
=SUMIF(A:A, "January", C:C) / DAY(EOMONTH(DATE(2024,1,1), 0))Exclude Outliers
Average only amounts under $500 (ignore large one-time purchases):
=AVERAGEIF(C:C, "<500")Building a Budget
Use 3-6 months of data to set realistic budget targets:
| Category | 3-Month Avg | Budget Target |
|---|---|---|
| Groceries | $418 | $450 |
| Dining | $188 | $175 |
| Gas | $145 | $150 |
Formula for each: =AVERAGEIF(Categories, A2, Amounts)
Setting budgets based on averages (not your best month) leads to plans you can actually stick to.
Variations
Weighted Recent Average
Give more weight to recent months using a helper column:
=SUMPRODUCT(Amounts, Weights) / SUM(Weights)Rolling 3-Month Average
Average the last 3 months only:
=AVERAGE(FILTER(Amounts, Months >= EDATE(TODAY(), -3)))Pro Tips
-
Use at least 3 months of data for meaningful averages
-
Separate regular from irregular expenses - average groceries, but track annual subscriptions separately
-
Review quarterly - spending patterns shift with seasons
-
Round up slightly when setting budgets to create buffer
Common Errors
- #DIV/0!: No matching values found - check your category name spelling
- Misleading averages: One expensive month can skew results - consider using MEDIAN for volatile categories