Enter the initial rate and the final rate into the Two-Point Average tab of the Average Rate Calculator to compute the simple (arithmetic) average of the two values. For an average rate of change between two points, use the Avg Rate of Change tab, and for interest rates across multiple balances, use the Weighted Avg Rate tab.
Related Calculators
- Call Attempts Per Second Calculator
- Processing Time Calculator
- Rate of Change Calculator
- Work Rate Calculator
- Usage Rate Calculator
- Completion Rate Calculator
- All Math and Numbers Calculators
Two-Point Average (Arithmetic Mean) Formula
The following two example problems outline the steps and information needed to calculate the two-point average (the arithmetic mean) of an initial and final rate.
AVR = (IR + FR) / 2
- Where AVR is the two-point Average Rate (simple arithmetic mean)
- IR is the initial rate
- FR is the final rate
To calculate the two-point average rate, sum the initial and final rates, then divide by 2 (this is an equal-weighted average of the two values).
How to Calculate a Two-Point Average Rate?
The following example problems outline how to calculate the two-point Average Rate (arithmetic mean).
Example Problem #1:
- First, determine the initial rate.
- The initial rate is given as: 50.
- Next, determine the final rate.
- The final rate is provided as: 90.
- Finally, calculate the Average Rate using the equation above:
AVR = (IR + FR) / 2
The values provided above are inserted into the equation below and computed.
AVR = (50 + 90) / 2 = 70
Example Problem #2:
For this problem, the variables required are provided below:
initial rate = 40
final rate = 30
Test your knowledge using the equation and check your answer with the calculator.
AVR = (IR + FR) / 2 = (40 + 30) / 2 = 35
