# LOGNORM.INV Excel

## What Is LOGNORM.INV Excel Function?

The LOGNORM.INV Excel function is categorized under statistical functions. It calculates the inverse of the cumulative distribution function CDF for a log-normal distribution.

The syntax for the LOGNORM.INV Excel function includes arguments such as probability, which is the probability to evaluate; mean, which is the mean of the natural logarithm of the data; and standard_dev, which is the standard deviation of the natural logarithm of the data.

In the following example, we will demonstrate the application of the LOGNORM.INV Excel function, which is used to determine the logarithmic normal distribution. To begin, select the desired cell where you wish to input the formula and compute the result. For this demonstration, let’s use cell B4.

Now, input the formula exactly as shown below:

=LOGNORM.INV(B1, B2, B3)

Press the Enter key to execute the calculation. The resulting value will be displayed in cell B4, mirroring the provided illustration.

### Syntax

Probability – This is the mandatory argument. This is the value used to evaluate the formula.

Mean – This is the mandatory argument. This is the logarithmic mean of the lognormal distribution.

Standard_dev – This is the mandatory argument.This is the standard deviation of the lognormal distribution.

###### Key Takeaways
• LOGNORM.INV function is an Excel function that computes the inverse of the cumulative distribution function (also known as CDF) for a log-normal distribution.
• The LOGNORM.INV function returns the value specified cumulative probability is reached in a log-normal distribution.
• Remember that the log-normal distribution is a probability distribution of a random variable whose logarithm follows a normal distribution.
• Also, the function, LOGNORM.INV in Excel is useful in finance, economics, and other fields the data is used in skewed distributions with positive values.

### How To Use LOGNORM.INV Function In Excel? (With Steps)

To effectively utilize the LOGNORM.INV function in Excel: follow these steps.

#### #1 – Access From The Excel Ribbon

Step 1: Choose the empty cell which will contain the result. Go to the Formulas tab and click it.

Step 2: Select the More Functions option from the menu.

Step 3: Select the Statistical option from the drop-down list. Select LOGNORM.INV from the drop-down menu.

Step 4: A window called Function Arguments appears. As the number of arguments, enter the value in the probability, mean, and standard_dev.

Select OK.

#### #2 – Enter The Worksheet Manually

Step 1: Select an empty cell for the output. Type =LOGNORM.INV() in the selected cell. Alternatively, type =L and double-click the LOGNORM.INV function from the list of suggestions shown by Excel.

Step 2: Press the Enter key to get the result.

### Examples

#### Example #1 – Calculate The Inverse Of A Log-Normal Distribution

In the following example, we will explore and apply the concept of the LOGNORM.INV Excel function to calculate the inverse of a log-normal distribution. The data within the provided table is organized as follows:

To calculate the desired output in cell B4, please follow these steps:

Step 1: Select the cell where you want to enter the formula and calculate the result; let’s use cell B4.

Now, enter the formula exactly as shown below:

=LOGNORM.INV(B1,B2,B3).

Step 2: Press the Enter key. The calculated value and graphical representation will be displayed in cell B4, just like in the provided image.

In this example, we are examining the values and calculate the inverse log distribution result.

#### Example #2 – Estimate The Probability Of A Log-Normal Distribution

In the following example, we will delve into the mechanics and application of the LOGNORM.INV Excel function, which allows us to estimate the probability of a log-normal distribution. The data within the provided table is organized as follows:

To obtain the desired output in cell B4, please adhere to the following steps:

Step 1: Select the cell where you wish to input the formula and compute the result; let’s utilize cell B4.

Now, input the formula precisely as displayed below:

=LOGNORM.INV(B1,B2,B3).

Step 2: Press the Enter key. The calculated value will be displayed in cell B4, accompanied by a graphical representation similar to the illustration provided.

In this particular instance, we will scrutinize the values and ascertain the outcome of the estimated probability of log distribution calculation.

#### Example #3 – Calculate The Confidence Interval Of A Log-Normal Distribution

In the following example, we will explore the mechanics and application of the LOGNORM.INV Excel function, which enables us to calculate the confidence interval of 5 different values of a log-normal distribution.

To obtain the desired output in cells B4 to F4, please follow these steps:

Step 1: Select the cell where you want to input the formula and compute the result; let’s use cell B4. Now, input the formula exactly as shown below:

=LOGNORM.INV(B1,B2,B3).

Step 2: Press the Enter key. We can see the result in cells B4 to F4, as shown in the below image.

In this specific instance, we will examine the values and determine the outcome of the confidence interval of 5 different values of a log-normal distribution.

### Important Things To Note

• The #NUM! error occurs when the probability argument entered falls below 0 or exceeds 1. Also, if the standard_dev argument is equal to or less than 0.
• The #VALUE! error occurs when any of the entered arguments are non-numeric.
• The LOGNORM.INV function is useful in determining the precise value of x when the cumulative log-normal distribution matches a probability value.
• We can use the RAND and LOGNORM.INV functions to generate a dataset adhering to a log-normal distribution.

1. What is the lognormal distribution function and inverse of the lognormal distribution function?

The inverse of the lognormal distribution function involves calculating the value at which a given cumulative probability occurs. It allows percentiles or quantiles from observed data.
In the following example, we will apply the LOGNORM.INV Excel function that determines the logarithmic normal distribution by entering the mean value as 10.

The steps are:
Step 1: Select cell B4 and enter the formula,
=LOGNORM.INV(B1, B2, B3).
Step 2: Press the Enter key. We can see the result in cell B4.
By following these steps, you will be able to utilize the LOGNORM.INV Excel function to determine the log-normal distribution.

2. What is the difference between the LOGNORM.INV function and NORM.INV function in Excel?

• The NORM.INV function accepts a normal distribution with mean and standard deviation inputs, whereas the LOGNORM.INV function accepts a lognormal distribution with location and scale parameters as inputs instead.
• The NORM.INV function is useful for normally distributed data, whereas the LOGNORM.INV function is useful in financial analysis dealing with variables that cannot be negative.

3. What is the limitation of using the LOGNORM.INV function in Excel?

• The probability in the LOGNORM.INV function specifies the percentile of the distribution. If the probability value is not entered correctly, it returns an error.
• The probability in the LOGNORM.INV function must be in the range of 0 and 1.
• Failing to input the parameters of the LOGNORM.INV function in the proper sequence will yield an inaccurate result. It is to ensure that the correct order of parameters is used for the correct outcome.