Want to transform complex data sets into meaningful single values? Excel’s REDUCE function makes this possible. Let’s explore how this powerful function processes data collections and performs sophisticated calculations that were once only possible through complex programming.
Implementing REDUCE in Excel
REDUCE takes a collection of values and combines them into a single result through iterative calculations. Think of it as a way to process data step by step, accumulating results along the way.
Creating Basic Sum Calculations with REDUCE
Let’s start with a simple example:
=REDUCE(0, A1:A10, LAMBDA(acc, val, acc + val))
This breaks down into three key components:
- Initial value (0)
- Range to process (A1:A10)
- LAMBDA function that defines the operation
Here’s a practical example:
Column A |
Running Total |
---|---|
10 |
10 |
20 |
30 |
30 |
60 |
40 |
100 |
Building Cumulative Operations
Want to create running totals? Here’s how:
- Set up your data range
- Create a REDUCE formula that tracks accumulation:
=REDUCE(0, A1:A4, LAMBDA(acc, val, LET(new_total, acc + val,
new_total)))
Working with Custom Aggregations
REDUCE shines when creating custom calculations. Here’s an example of a weighted average:
Value |
Weight |
Result |
---|---|---|
90 |
0.3 |
27 |
85 |
0.5 |
42.5 |
95 |
0.2 |
19 |
Formula:

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=REDUCE(0, A2:B4, LAMBDA(acc, row, acc + INDEX(row,1)*INDEX(row,2)))
Array Processing with REDUCE
REDUCE handles multi-dimensional data with ease. Consider this matrix multiplication example:
- Define your input arrays
- Process row-by-row combinations
- Accumulate results
Example for processing a 2×2 matrix:
A |
B |
Result |
---|---|---|
1 |
2 |
5 |
3 |
4 |
11 |
Real-World Applications
Let’s look at practical uses:
Financial Calculations
Calculate compound interest over multiple periods:
=REDUCE(Principal, SEQUENCE(Years), LAMBDA(acc, period, acc * (1 + Rate)))

Sales Data Aggregation
Process daily sales into running totals with conditions:
=REDUCE(0, Sales_Range, LAMBDA(acc, val, IF(val>0, acc + val, acc)))

Next Steps
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