How to Create Calculated Columns in Power Pivot in Excel: A Complete Guide
Last Updated :
29 Aug, 2024
Power Pivot in Excel is a powerful data modelling tool that enables advanced calculations on large datasets. One of its standout features is calculated columns, which allow users to derive new data by applying custom formulas to existing columns.
In this article, we’ll cover what calculated columns are, how to create them in Power Pivot, and their advantages and limitations.

Understanding Calculated Columns in Excel Power Pivot
Calculated columns are dynamic columns in Power Pivot that allow users to create new data by applying formulas or expressions to existing data. Unlike calculated fields, which are computed on-the-fly based on the context, calculated columns compute their values during data refresh. This makes them suitable for pre-computed data scenarios, such as sorting, filtering, complex calculations, or creating hierarchies.
How to Create Calculated Columns in Power Pivot in Excel
Follow these steps to create calculated columns in Power Pivot:
Step 1: Open the Power Pivot Window
Open Excel and navigate to the Power Pivot tab. Click on Manage to open the Power Pivot window.
Step 2: Select the table to which you want to add the calculated column

Step 3: Select the empty column and enter the formula for your calculated column in the formula bar and press Enter
=[ItemPrice]*(1+TaxRate])

Examples of Creating Calculated Columns in Power Pivot
Let's look at some practical examples of creating calculated columns in Power Pivot:
Example 1: Calculating Total Price with Tax
Transaction ID | Item Name | Item Price | Tax Rate |
1 | A | 10.00 | 0.06 |
2 | B | 25.00 | 0.08 |
3 | C | 15.00 | 0.06 |
4 | D | 30.00 | 0.09 |
Let us consider a retail dataset that contains sales transactions with columns for "Item Price" and "Tax Rate." So, when we need to calculate the total price (including tax), we can create a calculated column like:
Total Price with Tax = [Item Price] * (1 + [Tax Rate])
This way, calculated column will compute the total price for each and every transaction as shown in the example above. Now, it becomes easy to analyse and visualize data based on this new column and perform tasks such as creating a chart of tax revenue or calculating the average total price with tax .

Example 2: Calculating Age from Birthdate
Name | Birthdate |
John | 1985-03-15 |
Agasthi | 1990-12-02 |
Emily | 2000-04-10 |
Sarah | 1978-08-22 |
This dataset contains birthdates, and we aim to calculate the age of individuals. A calculated column can help one simplify this process as :
Age = YEAR(TODAY()) - YEAR([Birthdate])
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The "Age" calculated column hereby, computes the age of each individual based on their birthdate and the current year. This allows us to analyse the data by age groups, calculate statistics related to age or filter by specific age ranges.
Advantages of Calculated Columns in Power Pivot
- Enhanced Performance: As mentioned above, calculated columns are computed during data refresh and hence it reduces the need for real time calculations. This highly enhances the performance of complex dashboards and reports.
- Simplified Formulas: Calculated Columns also helps one simplify formulas as one encapsulates complex calculations into re-usable, easily comprehendible columns which enhances the clarity of the data model.
- Ease in filtering and sorting: It also helps in creating custom hierarchies, filter records based on derived values and sort data in specific ways.
- Data Consistency: Calculated Columns also helps one in ensuring that derived data is remaining consistent throughout the analysis. So, it helps user by avoiding the need to recompute values manually or worry about discrepancies.
Limitations of Calculated Columns in Power Pivot
- Huge Consumption Of Memory: Calculated Columns consume a huge chunk of memory as they store additional data. These large datasets with numerous calculated columns can impact performance and increase file size.
- Non-Addictive Measures: It is not suitable for measures that require sums, aggregations or averages. For such cases, calculated fields are more helpful.
Conclusion
Calculated columns in Power Pivot are a vital tool for data modeling and analysis in Excel. They empower users to create meaningful insights, perform complex calculations, and enhance report performance. By understanding their capabilities, you can leverage calculated columns to unlock the full potential of your data and make more informed decisions in various business contexts.
How to generate a calculated columns in Power Pivot?
- Locate and select the right-most column in the desired table.
- In the formula bar, input a valid DAX formula and hit Enter.
- Right-click on the column header, choose "Rename," and provide a name for the column.
When should I utilise calculated columns ?
In a Power Pivot data model, a calculated column is a column that you build by specifying a formula or expression. When you need to create new data based on existing columns and you prefer for those values to be computed during data refresh rather than on-the-fly during analysis, you should utilise calculated columns.
Are calculated columns the same as calculated fields (measures) in Power Pivot?
No, calculated columns and calculated fields are completely different concepts. Calculated columns add new columns with precomputed values to your data model, whereas calculated fields are used for aggregations and are computed on-the-fly based on filter context.
Can I change or alter a calculated column after it has been created?
Yes, Power Pivot allows you to alter or change a computed column. To edit a calculated column, just double-click on it after opening the Power Pivot window and selecting the table that the calculated column is contained in. The formula can then be changed in the formula bar.
Does the performance of my Power Pivot model suffer from calculated columns?
Yes, computed columns use memory and may increase your Power Pivot workbook's file size. Large datasets with a lot of computed columns could operate slower and require more time for a data refresh. The addition of calculated columns must be balanced with preserving high performance.
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