Salesmen yearly interest rate average target

[KelvinMorel]

Dear,

I'm having issues to create some reports, I should need to report Salesmen yearly interest rate average target fixed by the business [2,5%] but I don't know how should I even calculate it, for instance: salesman can have, or should have, multiple sales in a year and each sale has different contract's length and/or interest rate as following:

Salesman 1
* Customer A: Contract for 4 years - rate of 4,52%
* Customer B: Contract for 2 years - rate of 10,23%
* Customer C: Contract for 6 years - rate of 2,10%

Salesman 2
* Customer A: Contract for 6 years - rate of 4,52%
* Customer B: Contract for 8 years - rate of 10,23%
* Customer C: Contract for 10 years - rate of 2,10%

If I had to calculate the average interest rate of these 2 salesmen I would say both salesmen have the same average interest rate 5,616% but this is not correct because I'm not taking in consideration the length of contracts, I really don't know how to get around this.

Could please someone help me out?

[MarcelBeug · Accepted solution]

How about a weighted average?

Salesman 1: (4 * 4,52% + 2 * 10,23% + 6 * 2,10%) / (4 + 2 + 6) = 4,262%

Salesman 2: (6 * 4,52% + 8 * 10,23% + 10 * 2,10%) / (6 + 8 + 10) = 5,415%

[KelvinMorel]

Hi Marcel,

Like that one, I will try this for sure.

Thx