Pivot tables are one of many Excel tools for extracting meaning from large groups of numerical data. They can be applied whenever raw data in a spreadsheet or database needs to be summarized.
What is a Pivot Table
A pivot table is a compact version of a spreadsheet or database that makes it easier to see trends, movements, and patterns in data. It can be used to extract insights from categories and subcategories of numerical data without writing formulas. It is also used as a data visualization tool alongside pivot charts to create visual reports of summarized data.
You can take a dataset with thousands or millions of entries and create a simple, organized pivot table that is very easy to understand and interpret.
Pivot tables extract data from the columns and rows in your spreadsheet. They work best with data presented in a tabular format with no blank rows or columns.
Creating a Pivot Table in Excel
To best understand pivot tables, you need to work with them yourself. While pivot tables were created to summarize large groups of data, they can be used with datasets of any size.
For best results, you need to make sure your data is organized in a tabular format and there are no empty rows or columns. Also, each column should contain only one data type, i.e. no dates in the currency column and no names in the income column.
Common Uses for Pivot Tables in Excel
When you need to quickly summarize large amounts of numerical data in a worksheet, pivot tables should be your first resort. They can be used for a number of purposes, such as:
Budget Analysis
You can use pivot tables to analyze your expenses and revenue by category to determine areas to save. For example, let’s say I have all of my monthly income and expenses tracked in a spreadsheet.
With pivot tables, I can add up the total amount spent in each category and track how my money is being spent without using formulas.
Without pivot tables, I would have to write SUMIFs formulas for each category.
Project Management
If you use Excel to manage personal projects, you will find pivot tables quite useful for tracking tasks, project costs, and deadlines. With a spreadsheet showing project tasks, due dates, and allocated resources, pivot tables can be used to identify tasks that are behind schedule or over budget. It can tell you if a specific project is on track but has exceeded its budget due to unexpected costs.
Health and Fitness Tracking
Pivot tables can help you track your progress in different aspects of your life. For example, you can create a health and fitness spreadsheet with details of your exercise activities, total time spent, calories burned, overall level of exertion, nutrition, and sleep.
A pivot table can help you determine which exercise activities you are spending most of your time on and how close you are to achieving your goals. It can tell you your average workout time and help you decide on any improvements to your current workout strategy. It can show that you are consistently meeting your protein intake goals, but you need more sleep.