How to Calculate an Average Transaction

Financial transactions that are conducted by businesses may range dramatically in terms of the individual amounts. One way to assess and monitor the amount of money coming into or going out of a business is to calculate the Average Transaction Value. This calculation is also commonly known as "ATV." Calculating the average transaction provides the mathematical mean or average of a set of transactions over a particular period of time.

• 1

  Record the financial transactions for a particular period of time. For instance, a rental company might record the following incoming cash on a particular day: $50, $40, $100, and $75.

• 2

  Add the values of the transactions. In this example, you would add 50, 40, 100 and 75 to get a value of $265.

• 3

  Divide the total from step three by the number of transactions being evaluated to determine the average transaction value. For instance, you would divide 265 by 4 to get an average transaction of $66.25.