REDUCE Function Tutorial: Excel Data Transformation Guide (2025 Update)

Published: January 29, 2025 - 2 min read

Hannah Recker

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:

  1. Initial value (0)
  2. Range to process (A1:A10)
  3. 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:

  1. Set up your data range
  2. 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:

  1. Define your input arrays
  2. Process row-by-row combinations
  3. 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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Hannah Recker Growth Marketer
Hannah Recker was a data-driven growth marketer before partying in the data became a thing. In her 12 years experience, she's become fascinated with the way data enablement amongst teams can truly make or break a business. This fascination drove her to taking a deep dive into the data industry over the past 4 years in her work at StreamSets and Coefficient.
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