The MAPE of this model turns out to be 6.47%. Step 3: Calculate the mean absolute percent error.Ĭalculate MAPE by simply finding the average of the values in column D: We will repeat this formula for each row: We will use this formula to calculate the absolute percent error for each row.Ĭolumn D displays the absolute percent error and Column E shows the formula we used: Recall that the absolute percent error is calculated as: |actual-forecast| / |actual| * 100. Step 2: Calculate the absolute percent error for each row. Step 1: Enter the actual values and forecasted values in two separate columns. To calculate MAPE in Excel, we can perform the following steps: For example, a model with a MAPE of 2% is more accurate than a model with a MAPE of 10%. The lower the value for MAPE, the better a model is able to forecast values. For example, a MAPE value of 11.5% means that the average difference between the forecasted value and the actual value is 11.5%. MAPE is commonly used because it’s easy to interpret and easy to explain. The formula to calculate MAPE is as follows: One of the most common metrics used to measure the forecasting accuracy of a model is MAPE, which stands for mean absolute percentage error.
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