How to calculate t value in Excel

In this Excel tutorial lesson, we will learn a very useful financial term known as T-Value.

A T-Value is a statistical calculation using the mean, standard deviation, and degrees of freedom. It will help in financial projections and forecasting.

With this information, a business owner can calculate the statistical low and high for earnings in a specific month and with a degree of confidence that the future earnings will fall within that range, which helps with better business planning. Projections might suggest that the business can expect to gross $150,000 in May and the T-Value might tell them that number has a 90-percent rate of confidence. If the confidence rate is less than 50-percent, the business can plan for the potential of a lower return and work to increase the T-Value for future months and years.

The syntax

Let us show you how to calculate the T value using a simple formula in Excel:

The Formula =T.DIST(x,deg_freedom,tails)


The T.DIST function uses the following arguments:

  • X (required argument) – This is the numeric value at which we wish to evaluate the T Distribution.
  • Deg_freedom (required argument) – An integer that indicates the number of degrees of freedom.
  • Tails (required argument) – This specifies the number of distribution tails that would be returned. If tails =1, T.DIST returns the one-tailed distribution. If tails = 2, T.DIST returns the two-tailed distribution.



Let's create the data for the calculation:


T dist function

  • x: 2
  • degrees of freedom: 10
  • Tails: 1


The formula

The formula is applied as below:


excel t.dist function

Result is:

excel t.dist formula

Tthe Tdist function result is 0.963306

Further reading: 
How to calculate p value?