What Is a Running Total and How Is It Calculated?

A running total represents a cumulative sum that updates with each new entry in a sequence of numbers. This method contrasts with a final sum, which only presents the aggregate at the end of a series. Running totals are valuable because they offer an instant snapshot of an evolving total.

How to Calculate a Running Total

Calculating a running total involves an iterative process where each new value is added to the preceding cumulative sum. This method is straightforward and can be applied manually or with digital tools like spreadsheets. To begin, the first value in a sequence serves as the initial running total.

For each subsequent entry, you simply add the current value to the running total calculated in the previous step. For instance, if you are tracking daily income: on Day 1, an income of $100 results in a running total of $100. On Day 2, if $50 is earned, you add $50 to the previous total of $100, making the new running total $150. If Day 3 brings in $75, that amount is added to $150, yielding a running total of $225.

In spreadsheet software, this is commonly achieved by referencing the cell containing the prior running total and the cell with the current new value. For example, if your daily incomes are in column B starting from B2, and your running totals are in column C, cell C2 would contain the value from B2. Cell C3 would then contain a formula like =C2+B3, which is then copied down the column.

Practical Applications of Running Totals

Running totals are used across personal and business scenarios for monitoring progress and making informed decisions. In personal finance, individuals often use running totals to manage their budgets by tracking cumulative spending against an allocated amount. This allows them to see how much money remains or how much has been spent up to any given point, helping to prevent overspending.

Businesses use running totals for sales and revenue tracking to visualize growth patterns and identify trends. In inventory management, a running total of items sold or received helps maintain real-time stock levels, preventing shortages or overstocking.

Project managers use running totals to monitor progress by accumulating completed tasks or hours worked against project timelines and budgets. This provides a clear overview of whether a project is on schedule and within financial constraints. In sports, running totals display scores as they accumulate during a game, offering immediate updates on team or player performance.