Outliers — values far outside the normal range — can wreck an average or hide a data-entry error. The standard, robust way to flag them is the IQR (interquartile range) rule built on QUARTILE.
The example
Most values cluster near 50; the 200 is an outlier.
| A | B | |
|---|---|---|
| 1 | Value | Outlier? |
| 2 | 48 | No |
| 3 | 52 | No |
| 4 | 50 | No |
| 5 | 200 | Outlier |
| 6 | 49 | No |
The formula
With Q1/Q3 computed from the data, the flag in B2:
How it works
The IQR rule defines “normal” bounds:
- Compute the quartiles:
Q1 = QUARTILE(range, 1)andQ3 = QUARTILE(range, 3). The IQR isQ3 − Q1— the spread of the middle 50%. - The “fences” are
Q1 − 1.5×IQR(lower) andQ3 + 1.5×IQR(upper). - Any value outside those fences is flagged as an outlier — the
200here. - The 1.5 multiplier is the convention (3× flags only extreme outliers). It’s robust because quartiles aren’t swayed by the outliers themselves.
Alternative: z-scores. Flag values more than 3 standard deviations from the mean: =ABS(A2 - AVERAGE($A$2:$A$100)) > 3*STDEV.S($A$2:$A$100). The IQR method is sturdier when outliers are present, since they don’t distort the quartiles.
Try it: interactive demo
Type values (commas); outliers by the IQR rule are flagged.
Variations
Z-score method
More than 3 SD from the mean:
Extreme outliers only
Use a 3× multiplier instead of 1.5×:
Highlight outliers automatically
Drop the same OR test into a conditional-formatting rule.
Pitfalls & errors
Use .INC quartiles consistently. Mixing QUARTILE.INC and .EXC shifts the fences. The classic QUARTILE = .INC.
Small samples are noisy. With very few data points, quartiles (and the fences) are unstable — the rule works best on a decent number of values.
An outlier isn’t always an error. It may be a real, important extreme. Investigate before deleting — flagging ≠ removing.
Practice workbook
Frequently asked questions
How do I find outliers in Excel?
What's the IQR method for outliers?
Should I use the IQR or z-score method?
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