A calculated field in a pivot table represents a custom column whose values are derived through a formula. This formula uses other fields within the data source to generate new, meaningful information for analysis. For example, one might create a calculated field that represents the profit margin by subtracting ‘Cost of Goods Sold’ from ‘Sales Revenue’, thereby providing a direct profit margin figure within the pivot table.
Employing calculated fields significantly enhances data analysis capabilities. It facilitates the creation of dynamic metrics and ratios that would otherwise require manual calculations or pre-processing of the source data. This ability to generate new insights within the pivot table environment saves time, reduces errors, and allows for more efficient exploration of the underlying data patterns.
