Statistics: Standard Error Of A Proportion And Margin

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When you report that 30% of customers prefer an option, you should also say how precise that figure is. The standard error of a proportion is the square root of p times (1 minus p) over n, and multiplying by 1.96 gives the 95% margin of error.


Quick formula: Proportion times one minus the proportion, over the sample size, then square root:
=SQRT(B2*(1-B2)/C2)

A 50% result on 400 responses has a 2.5% standard error and about a 4.9% margin of error.

Functions used (tap for the full reference guide):

The example

Three surveys. Larger samples shrink the margin; proportions near 50% have the widest margin.

ABCDE
1CaseProportionSample nStd errorMargin
2Survey A50.0%4002.5%4.9%
3Survey B30.0%1,0001.4%2.8%
4Survey C8.0%2501.7%3.4%

The formula

The standard error uses the proportion itself; the margin multiplies it by 1.96:

=SQRT(B2*(1-B2)/C2) // standard error; margin = 1.96*SE

How it works

Here is the logic, one piece at a time:

  1. B2*(1-B2) is the variance of a single yes/no response.
  2. /C2 divides by the sample size.
  3. SQRT(...) converts to a standard error.
  4. 1.96*... turns it into a 95% margin.

Report the proportion with its margin, for example 30% plus or minus 2.8%.

Try it: interactive demo

Interactive

Enter the survey proportion and sample size.

Variations

Confidence interval low

Lower bound.

=B2-1.96*D2

Confidence interval high

Upper bound.

=B2+1.96*D2

Pitfalls & errors

Enter the proportion as a decimal or a percent-formatted cell. Entering 30 instead of 0.30 produces nonsense.

This normal approximation is weak for very small samples or proportions near 0 or 1.

Use the larger-sample rule: n*p and n*(1-p) should both be above 10.

Practice workbook

📊
Download the free Statistics: Standard Error Of A Proportion And Margin practice workbook
Edit the yellow proportion and sample cells; standard error and margin recalculate.

Frequently asked questions

What does 1.96 mean?
It is the z-value for 95% confidence in a normal distribution.
How do I get a 99% margin?
Use 2.576 in place of 1.96.

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Related formulas: Statistics: Survey Sample Size For A Margin Of Error · Confidence Interval for a Mean · Standard Error of the Mean

Function references: SQRT