Excel PRODUCT function

Summary

The Excel PRODUCT function multiplies all the numbers provided as arguments and returns the product. This function is particularly useful in financial analysis and mathematical calculations where multiplying several values together is required.
Syntax
				
					=PRODUCT(number1, [number2], ...)
				
			
  • number1, number2, …: The numbers, cell references, or ranges to multiply. Up to 255 arguments can be entered
Return value
The product of the given numbers.

How to use

Use PRODUCT by entering the numbers or cell references you wish to multiply. The function will compute the product of these inputs.

Examples

Simple PRODUCT
Multiplying Direct Numbers: For calculating the product of individual numbers:
				
					=PRODUCT(3, 4, 5)
				
			
This formula multiplies 3, 4, and 5, resulting in 60.
PRODUCT with Cell References
Multiplying Cell Values: Utilizing PRODUCT with cell references:
				
					=PRODUCT(A2, B2, C2)
				
			
If A2, B2, and C2 contain numbers, this formula will multiply them together.
PRODUCT in Financial Analysis
Compound Growth Factor Calculation: Using PRODUCT to determine cumulative growth over several periods:
				
					=PRODUCT(1 + Annual_Return1, 1 + Annual_Return2, ...)
				
			
This formula is useful for calculating the overall growth factor given different annual returns for each period.

Additional Notes

  • PRODUCT is an efficient way to multiply a series of numbers, especially when compared to using multiple multiplication operators.
  • It’s particularly handy in scenarios where you need to multiply ranges or arrays of numbers.

Related Functions

Excel SUM function

The Excel SUM function adds together numbers, fundamental for financial totals and aggregating data.

Excel SUMPRODUCT function

The Excel SUMPRODUCT function multiplies arrays and sums the result, crucial for complex calculations and data analysis.

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