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Weighted Moving Average Calculator

Calculate a weighted moving average that emphasises recent periods.

About Weighted Moving Average Calculator

Linear weighting gives the most recent period the largest influence, which reduces lag compared with a simple moving average. The effective lag is roughly a third of the window rather than half. Weighted averages respond faster to genuine turning points but also to noise, which is the standard trade-off in smoothing.

Formula

Weighted Moving Average

WMA = Σ(value × weight) ÷ Σweight, with linearly declining weights

linear weights
n, n−1, … 1 applied from most recent to oldest

Worked example

With the default values below, Weighted Moving Average Calculator returns Weighted Moving Average of 116.60000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Most recent period
120
Previous period
115
Two periods ago
108
Three periods ago
125

Results

Weighted Moving Average
116.60000
Simple Moving Average
117.00000
Difference From the Simple Average
-0.40000
Weight on the Most Recent Period
40.000%
Effective Lag
1.000

Step by step

  1. 1Values used
  2. 2Weighted Moving Average
  3. 3Weighted Moving Average= 116.60000
  4. 4Simple Moving Average= 117.00000
  5. 5Difference From the Simple Average= -0.40000
  6. 6Weight on the Most Recent Period= 40.000
  7. 7Effective Lag= 1.000

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 5 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Weighted Moving Average calculated?

WMA = Σ(value × weight) ÷ Σweight, with linearly declining weights Linear weighting gives the most recent period the largest influence, which reduces lag compared with a simple moving average. The effective lag is roughly a third of the window rather than half.

Why does Weighted Moving Average matter?

Weighted averages respond faster to genuine turning points but also to noise, which is the standard trade-off in smoothing.

What values do I need to enter?

This calculator takes 4 inputs: Most recent period, Previous period, Two periods ago, Three periods ago. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.

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