How to use the AVERAGE function

Calculates the average of numbers in a cell range. In other words, the sum of a group of numbers and then dividing by the count of those numbers.

1. Syntax

The AVERAGE function may have up to 255 arguments, each argument can contain a reference to a single cell, cell range, and/or constants.

You can also use other functions in the arguments, this makes it possible to calculate an average based on a condition or criteria among many other things.

AVERAGE(number1, [number2], ...)

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2. Arguments

The first argument is required, the remaining arguments are optional.

number1 - Required. numbers or a cell range

[number2] - Optional. Additional arguments up to 255

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3. Example

This example demonstrates a formula in cell D3 that calculates an average based on a column, the column contains both numerical values and empty cells.

This is not a problem, the AVERAGE function is designed to ignore empty blank cells.

Formula in cell D3:

Cells B4 and B7 are empty, they are not counted. 3 + 5 + 4 + 4 equals 16. 16 / 4 equals 4.

Here is how the AVERAGE function works:

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4. How to average a column containing some text values

This example demonstrates a formula in cell D3 that calculates an average based on a column, the column contains both numerical values and text values.

This is also not a problem, the AVERAGE function is designed to ignore text values, however, keep in mind that error values are not ignored.

Formula in cell D3:

Cells B4 and B7 are empty, they are not counted. 3 + 5 + 4 + 4 equals 16. 16 / 4 equals 4.

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5. Are zeros included in the AVERAGE function?

This example demonstrates a formula in cell D3 that calculates an average based on values located in a column, the column contains numerical values including some zeros.

The AVERAGE function calculates an average including zeros by default. How to calculate an average and ignore 0 (zeros)

Formula in cell D3:

Cells B4 and B7 are empty, they are not counted. 3 + 5 + 4 + 4 equals 16. 16 / 4 equals 4.

Cells B4 and B7 contain 0 (zeros), they are counted.

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6. Are boolean values ignored in the AVERAGE function?

Boolean values in a cell range are ignored and not counted shown in cell D3 in the example above.

Formula in cell D3:

3 + 5 + 4 + 4 = 16. 16/4 = 4.

Boolean values are ignored by the AVERAGE function, however, they are included if you enter a boolean value as a constant in an argument, see cell B13 above.

The numerical equivalents are:

TRUE = 1
FALSE = 0 (zero)

Formula in cell B13:

1 + 0 = 1. 1/2 = 0.5 Cell B13 returns 0.5.

To average boolean values multiply the cell range with 1, this converts boolean values to their numerical equivalent.

Array formula in cell D6:

6.1 How to enter an array formula

To enter an array formula, type the formula in a cell then press and hold CTRL + SHIFT simultaneously, now press Enter once. Release all keys.

The formula bar now shows the formula with a beginning and ending curly bracket telling you that you entered the formula successfully. Don't enter the curly brackets yourself.

6.2 Explaining formula in cell D6

Step 1 - Convert boolean values

B3:B8*1

becomes

{3; TRUE; 5; 4; TRUE; 4}*1

and returns

{3; 1; 5; 4; 1; 4}.

Step 2 - Calculate the average

AVERAGE(B3:B8*1)

becomes

AVERAGE({3; 1; 5; 4; 1; 4})

and returns 3. 3 + 1 + 5 + 4 + 1 + 4 = 18. 18/6 = 3.

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7. How to average absolute values

The array formula in cell D3 converts numbers in B3:B8 to absolute numbers meaning the minus sign is removed. In other words, all numbers are equal to 0 (zero) or larger. The numbers are 3, -2, 5, -3, 3, and 4.

Formula in cell D3:

3 + 2 + 5 + 3 + 3 + 4 equals 20. 20 / 6 = approx. 3.33

How to enter an array formula

8. Explaining formula

Step 1 - Calculate positive numbers

The ABS function converts negative numbers to positive numbers, in other words, the ABS function removes the sign.

ABS(number)

ABS(B3:B8)

becomes

ABS({3; -2; 5; -3; 3; 4})

and returns

{3; 2; 5; 3; 3; 4}.

Step 2 - Calculate the average

AVERAGE(ABS(B3:B8))

becomes

AVERAGE({3; 2; 5; 3; 3; 4})

and returns approx. 3.33

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8. How to calculate an average across sheets

In order to calculate an average across worksheets values must be located at the same cell range throughout all worksheets. This technique can greatly reduce time you need to spend on formulas.

Formula in cell D3:

The formula uses values from sheets 'Across sheets' and 'Across sheets1' in both cell ranges B3:B8 and returns approx. 3.167

Here is how to enter this formula:

1. Double press with left mouse button on cell D3, the prompt appears.
2. Type =AVERAGE(
3. Select cell range B3:B8 with mouse.
4. Select tab "Across sheets" with left mouse button.
5. Press and hold SHIFT key.
6. Select tab "Across sheets1" with left mouse button.
7. Release SHIFT key.
8. Type )
9. Press Enter.

All worksheets between Across sheets and Across sheets1 are now selected This example has only these two worksheets however, the technique is the same regardless the number of worksheets.

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9. How to average by group

The image above demonstrates an array formula that calculates an average based on a condition specified in cell F2. Cell range B3:B8 contains categories and cell range C3:C8 contains the corresponding numbers we want to calculate an average.

Array formula in cell D3:

How to enter an array formula

The array formula in cell D3 extracts number 3, 5, 3, and 4 based on the corresponding categories on the same row in cell range B3:B8. The average is 3.75 and here is how:
3+5+3+4 equals 15.
15 / 4 equals 3.75 This value matches the value in cell D3, our calculations are correct.

Explaining formula

Step 1 - Logical test

The equal sign lets you compare value to value, the result is a boolean value TRUE or FALSE. This will tell us which cells are equal to the condition.

B3:B8=F2 becomes {"A"; "B"; "A"; "B"; "A"; "A"}="A"

and returns {TRUE; FALSE; TRUE; FALSE; TRUE; TRUE}.

Step 2 - Evaluate IF function

The IF function returns one value if the logical test is TRUE and another value if the logical test is FALSE.

IF(logical_test, [value_if_true], [value_if_false])

IF(B3:B8=F2,C3:C8,"") becomes IF({TRUE; FALSE; TRUE; FALSE; TRUE; TRUE},C3:C8,"")

becomes IF({TRUE; FALSE; TRUE; FALSE; TRUE; TRUE},{3; -2; 5; -3; 3; 4},"")

and returns {3; ""; 5; ""; 3; 4}.

Step 3 - Calculate average

AVERAGE(IF(B3:B8=F2,C3:C8,"")) becomes AVERAGE({3; ""; 5; ""; 3; 4}) and returns 3.75

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Note, the AVERAGEIF and AVERAGEIFS functions are built to handle conditions without the need for an array formula. They are available for Excel 2007 users and later versions, I highly recommend you check them out.

10. How to calculate an average based on a month in corresponding date on the same row

This example lets you calculate an average based on the month in corresponding dates. The image above shows dates in cell range B3:B8, the months are B3: January, B4: February, B5: January, B6: March, B7 and B8: January.

The condition is specified in cell F2. 1 is January, 2 i February ... 12 is December. The formula filters the numbers in C3:C8 based on the dates in B3:B8 if the dates are equal to 1 meaning January.

Array formula in cell F4:

How to enter an array formula

The number is not included in the calculation if the corresponding date is not equal to the specified value in cell F2 which is 1 in this example.

Explaining formula

Step 1 - Calculate month number

The MONTH function returns a number corresponding to the position of a given month in a year. January = 1, ... December = 12.

MONTH(B3:B8)

becomes

MONTH({44583; 44611; 44564; 44635; 44579; 44572})

and returns

{1; 2; 1; 3; 1; 1}.

Step 2 - Identify numbers equal to the specified month

The equal sign lets you compare value to value, the result is a boolean value TRUE or FALSE. This will tell us which cells are equal to the condition.

MONTH(B3:B8)=F2

becomes

{1; 2; 1; 3; 1; 1}=F2

becomes

{1; 2; 1; 3; 1; 1}=1

and returns

{TRUE; FALSE; TRUE; FALSE; TRUE; TRUE}.

Step 3 - Replace TRUE with corresponding number in C3:C8

The IF function returns one value if the logical test is TRUE and another value if the logical test is FALSE.

IF(logical_test, [value_if_true], [value_if_false])

IF(MONTH(B3:B8)=F2,C3:C8,"")

becomes

IF({TRUE; FALSE; TRUE; FALSE; TRUE; TRUE}, C3:C8, "")

becomes

IF({TRUE; FALSE; TRUE; FALSE; TRUE; TRUE}, {3; -2; 5; -3; 3; 4}, "")

and returns

{3; ""; 5; ""; 3; 4}.

Step 4 - Calculate average

AVERAGE(IF(MONTH(B3:B8)=F2,C3:C8,""))

becomes

AVERAGE({3; ""; 5; ""; 3; 4})

and returns 3.75

3 + 5 + 3 + 4 = 15. 15/4 = 3.75

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11. How to average blank as zero

The AVERAGE function ignores blank cells , however, there is a simple workaround that allows you to count 0's (zeros) to the total number of observations.

Keep in mind, the average is calculated like this: Sum / total number of items. A blank cell is not in the total they are simply ignored. The trick is to add a 0 to the cell range, this makes the formula add a zero to a blank cell which returns a 0 (zero) in all blank cells in the given cell range.

Array formula in cell E4:

How to enter an array formula

There are occasions when you want the blank to be counted in the total number of items and this is how to do it in the regular AVERAGE function. This is simple, reliable and effective.

Explaining formula

Step 1 - Add 0 (zero) to values

The plus sign lets you add numbers in Excel, an empty cell converts to a 0 (zero).

B3:B8+0

becomes

{3; ""; 5; ""; 3; 4} + 0

and returns {3; 0; 5; 0; 3; 4}.

Step 2 - Calculate average

AVERAGE(B3:B8+0)

becomes

AVERAGE({3; 0; 5; 0; 3; 4})

and returns 2.5

3+0+5+0+3+4 = 15. 15/6 = 2.5

Average without blanks as zeros: 3+5+3+4 = 15. 15/4 = 3.75

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12. How to calculate an average excluding the largest and smallest numbers

This example demonstrates a formula that excludes the largest and smallest number from a set of values. The image above shows six values in cell range B3:B8 and they are: 3, 2, 5, 2, 1, and 4.

The formula excludes the highest and lowest number from the calculations, if there are multiple values matching the largest or smallest value then all of them are excluded.

Array formula in cell E2:

How to enter an array formula

The largest number in 3, 2, 5, 2, 1, and 4 is 5 and the smallest is 1, The remaining values are 3, 2, 2, and 4. 3+2+2+4 equals 11. 11 / 4 equals 2.75

Explaining formula

Step 1 - Calculate the largest value

The MAX function returns the largest value in a cell range or array.

MAX(number1, [number2], ...)

MAX(B3:B8)

becomes

MAX({3; 2; 5; 2; 1; 4})

and returns 5.

Step 2 - Compare largest value to B3:B8

The equal sign lets you compare value to value, the result is a boolean value TRUE or FALSE. This will tell us which cells are equal to the largest number.

MAX(B3:B8)=B3:B8

becomes

5={3; 2; 5; 2; 1; 4}

and returns

{FALSE; FALSE; TRUE; FALSE; FALSE; FALSE}.

Step 3 - Calculate smallest value

The MIN function returns the smallest number in cell range or array.

MIN(number1, [number2], ...)

MIN(B3:B8)

becomes

MIN({3; 2; 5; 2; 1; 4})

and returns 1.

Step 4 - Compare the smallest number to numbers in B3:B8

The equal sign lets you compare value to value, the result is a boolean value TRUE or FALSE. This will tell us which cells are equal to the smallest number.

MIN(B3:B8)=B3:B8

becomes

1= {3; 2; 5; 2; 1; 4}

and returns

{FALSE; FALSE; FALSE; FALSE; TRUE; FALSE}.

Step 5 - Add arrays (OR logic)

The plus sign lets you add values and also arrays, this creates OR logic between the two arrays containing boolean values.

TRUE + TRUE = TRUE
TRUE + FALSE = TRUE
FALSE + TRUE = TRUE
FALSE + FALSE = FALSE

One more thing, the boolean values are converted into their numerical equivalents when you add the arrays.

TRUE = 1 or in fact any number except zero
FALSE = 0 (zero)

(MAX(B3:B8)=B3:B8)+(MIN(B3:B8)=B3:B8)

becomes

{FALSE; FALSE; TRUE; FALSE; FALSE; FALSE} + {FALSE; FALSE; FALSE; FALSE; TRUE; FALSE}

and returns {0; 0; 1; 0; 1; 0}.

Step 6 - Replace 0 (zero) with corresponding value

The IF function returns one value if the logical test is TRUE and another value if the logical test is FALSE.

IF(logical_test, [value_if_true], [value_if_false])

IF((MAX(B3:B8)=B3:B8)+(MIN(B3:B8)=B3:B8),"",B3:B8)

becomes

IF({0; 0; 1; 0; 1; 0},"",B3:B8)

becomes

IF({0; 0; 1; 0; 1; 0},"", {3; 2; 5; 2; 1; 4})

and returns {3; 2; ""; 2; ""; 4}.

Step 7 - Calculate average

AVERAGE(IF((MAX(B3:B8)=B3:B8)+(MIN(B3:B8)=B3:B8),"",B3:B8))

becomes

AVERAGE({3; 2; ""; 2; ""; 4})

and returns 2.75

3 +2 + 2 + 4 = 11. 11/4 = 2.75

13. How to exclude some cells from average

This formula calculates an average based on numbers in cell range B3:B8, however, only if they are not also in the exclude list in cell range D3:D5.

For example, the numbers in cell range B3:B8 are 3, 2, 5, 1, 3, and 4. The numbers in the exclude list are 2, 3, and 4. The remaining values in cell range B3:B8 are 5 and 1.

The average becomes 5 + 1 equals 6. 6 / 2 eqials 3.

Array formula in cell F3:

How to enter an array formula

The formula is small, easy to adjust and easy to understand. Excel 365 users may enter this array formula as a regular formula.

Explaining formula

Step 1 - Identify numbers based on criteria

The COUNTIF function calculates the number of cells that is equal to a condition. This will tell us where the excluded cells are.

COUNTIF(range, criteria)

COUNTIF(D3:D5, B3:B8)

becomes

COUNTIF({2;3;4},{3;2;5;1;3;4})

and returns

{1; 1; 0; 0; 1; 1}.

Step 2 - Replace 1 with nothing and 0 (zero) with number

The IF function returns one value if the logical test is TRUE and another value if the logical test is FALSE.

IF(logical_test, [value_if_true], [value_if_false])

IF(COUNTIF(D3:D5, B3:B8), "", B3:B8)

becomes

IF({1; 1; 0; 0; 1; 1}, "", B3:B8)

becomes

IF({1; 1; 0; 0; 1; 1}, "", {3; 2; 5; 1; 3; 4})

and returns

{""; ""; 5; 1; ""; ""}.

Step 3 - Calculate average

AVERAGE(IF(COUNTIF(D3:D5, B3:B8), "", B3:B8))

becomes

AVERAGE({""; ""; 5; 1; ""; ""})

and returns 3. 5+1 = 6. 6/2 = 3

14. Calculate running average of last 10 data with random blank cells

Answer:

This array formula creates a dynamic range, filtering the 10 last data and returns the average. Adjust cell ranges $A$1:$A$25 in formula below.

Array formula in cell C3:

How to create an array formula

Excel 365 users can skip these steps, no need to enter an array formula. Simply press Enter.

1. Select cell C3
2. Copy (Ctrl + c) array formula
3. Paste (Ctrl + v) array formula to formula bar.
   
4. Press and hold Ctrl + Shift simultaneously.
5. Press Enter once.
6. Release all keys.

How this array formula works in cell C18

The array formula calculates a dynamic cell range in column C to use based on non-empty cells in column B.  $B$3:B3 is a dynamic cell reference, it expands as you copy the formula to cells below. This makes it a running average meaning a new average is calculated in every new cell below cell C.

The INDEX function creates a cell reference based on the 10th largest row number calculated from the non-empty cells in column B. This cell reference changes dynamically making it possible to calculate a running average.

The LARGE function tries to find the 10th largest row number. The LARGE function returns an error before 10 non empty cells are found and the IFERROR function converts the errors to a "hyphen". This is why you see hyphen or a minus character in the first top cells in column C.

As soon as there are 10 values in column B to average the formula returns the calculated value. This continues as far as you copy the formula to cells below and have values in column B.

The difference between this formula and other running calculations is that it actually checks that there are 10 values to process. It also calculates the 10 last values based on the current cell ignoring blanks. Earlier values are not in the calculation, you can change this to any number. To do this change 10 in the formula to the number of values you want to calculate an average of.

Step 1 - Extract row numbers of not empty cells

The IF function has three arguments, the first one must be a logical expression. If the expression evaluates to TRUE then one thing happens (argument 2) and if FALSE another thing happens (argument 3).

The logical expression contains an expanding cell range that grows when the cell is copied to cells below.

IF($B$3:B18<>"", ROW($B$3:B18), "")

becomes

IF({TRUE; FALSE; TRUE; FALSE; TRUE; TRUE; TRUE; TRUE; FALSE; FALSE; FALSE; TRUE; TRUE; FALSE; TRUE; TRUE}, ROW($B$3:B18), "")

becomes

IF({TRUE; FALSE; TRUE; FALSE; TRUE; TRUE; TRUE; TRUE; FALSE; FALSE; FALSE; TRUE; TRUE; FALSE; TRUE; TRUE}, {3; 4; 5; 6; 7; 8; 9; 10; 11; 12; 13; 14; 15; 16; 17; 18}, "")

and returns {3;"";5;"";7;8;9;10;"";"";"";14;15;"";17;18}.

Step 2 - Calculate the 10th largest row number

The LARGE function returns the k-th largest number. LARGE( array, k)

LARGE(IF($B$3:B18<>"", ROW($B$3:B18), ""), 10)

becomes

LARGE({3;"";5;"";7;8;9;10;"";"";"";14;15;"";17;18}, 10)

and returns 3.

Step 3 - Use row number to create a cell reference

The INDEX function lets you build a cell reference based on a row and column number.

INDEX(B:B, LARGE(IF($B$3:B3<>"", ROW($B$3:B3), ""), 10))

becomes

INDEX(B:B, 3)

and returns B3.

Step 4 - Build complete cell reference

A cell reference may contain two parts separated by a colon.

INDEX(B:B, LARGE(IF($B$3:B3<>"", ROW($B$3:B3), ""), 10)):B18

returns B3:B18.

Step 5 - Average values

The AVERAGE function calculates the average based on the cell reference we calculated earlier.

AVERAGE(INDEX(B:B, LARGE(IF($B$3:B3<>"", ROW($B$3:B3), ""), 10)):B18)

becomes

AVERAGE(B3:B18)

and returns 53.8

Step 6 - Return - if calculation returns error

The IFERROR fucntion returns "-" if the formula returns an error which it does until 10 numbers are found in the cell range.

Get Excel *.xlsx file

Useful resources

AVERAGE function - Microsoft
How To Calculate the Average of a Group of Numbers

16. AVERAGE ignore blanks

Table of Contents

1. AVERAGE ignore blanks
2. Average - ignore blanks and errors
3. Average - ignore blanks in non-contiguous cells
4. Weighted average ignore blanks
5. Average ignore 0 (zeros) and blanks
6. Get Excel *.xlsx file

16.1. AVERAGE ignore blanks

The AVERAGE function is designed to ignore blank cells automatically but there are instances where it fails. The picture above seems to have blank cells in B3:B8, however, they are counted as zeros. Why?

16.1.1 Cells containing 0 (zero) formatted as a blank

The cells in B3:B8 are not truly empty, select B3:B8 and press CTRL + 1 to open the "Format Cells" settings.

Here we see that it has been formatted with custom cell formatting. Values containing 0 (zeros) are hidden, to show them press with left mouse button on General and then OK.

This will show your zeros again on your worksheet, if not read the next section. If you are interested in learning more about custom formatting codes, read this article: Excel’s TEXT function explained

16.1.2 Check your Excel settings

If this didn't do it, go to your Excel Options and then press with left mouse button on "Advanced".

Excel 2016 Users press with left mouse button on "File" on the ribbon and then press with left mouse button on "Options".

Find "Show a zero in cells that have zero value", is it enabled?

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16.2. Average - ignore blanks and errors

The AVERAGE function ignores empty cells out of the box automatically, no need to worry about that. However, if you are working with possible error values and use the IFERROR function to handle errors strange things happen.

The IFERROR function removes errors but has this side effect that it converts blank cells to zeros which in turn makes the AVERAGE function return an incorrect result.

Try this formula: =AVERAGE(IFERROR(B3:B8, "")) it returns 2 if you use the example values above and that is wrong. Use instead the following formula.

Formula in cell D3:

The formula above converts blank cells to error value #N/A! and then remove the error values, here are the steps in detail:

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Explaining formula

Step 1 - Identify nonempty cells

The less than and the greater than signs combined evaluate to "not equal to", in this case, not equal to nothing (blank). The result is a boolean value TRUE or FALSE.

B3:B8<>""'

returns {TRUE; TRUE; #DIV/0!; FALSE; #N/A; TRUE}.

Step 2 - Replace empty values with an error value

The IF function returns one value if the logical test is TRUE and another value if the logical test is FALSE.

IF(logical_test, [value_if_true], [value_if_false])

The IF function replaces TRUE with the corresponding value and FALSE with an error value. Error values in the logical test expression return the same in the IF function.

IF(B3:B8<>"", B3:B8, NA())

returns {5; #N/A; #DIV/0!; #N/A; #N/A; 1},

Step 3 - Handle error values

The IFERROR function replaces error values with a given value that you specify.

IFERROR(value, value_if_error)

In this case it replaces error values with nothing (blank).

IFERROR(IF(B3:B8<>"",B3:B8,NA()),"")

returns {5; ""; ""; ""; ""; 1}.

Step 4 - Calculate the average

The AVERAGE function calculates the average of a group of numbers, text and blank cells are ignored.

AVERAGE(number1, [number2], ...)

AVERAGE(IFERROR(IF(B3:B8<>"",B3:B8,NA()),""))

returns 3 in cell D3. 5 + 1 = 6. 6 / 2 = 3.

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16.3. Average - ignore blanks in non-contiguous cells

The following formula contains two non contiguous cell ranges B3:B8 and D3:D4, the AVERAGE function ignores blank cells automatically. If this is not the case, make sure Excel isn't using a different cell formatting, see section 1.1 and 1.2 above.

Formula in cell B11:

5+3+1+5 = 14. 14/4 = 3.5

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16.4. Weighted average ignore blanks

Formula in cell C14:

16.4.1 Explaining formula in cell C14

Step 1 - Find weight based on value

The LOOKUP function lets you find a value in a cell range and return a corresponding value on the same row.

LOOKUP(lookup_value, lookup_vector, [result_vector])

LOOKUP($B$3:$B$12, $E$3:$E$8, F3:F8)

returns {1; 3; 6; 4; 4; 1; 1; 5; 4; 4}.

Step 2 - Replace blank values with 0 (zero)

The IF function returns one value if the logical test is TRUE and another value if the logical test is FALSE.

IF(logical_test, [value_if_true], [value_if_false])

IF(B3:B12<>"", LOOKUP($B$3:$B$12, $E$3:$E$8, F3:F8), 0)

returns {0; 3; 6; 4; 4; 1; 0; 5; 4; 4}.

Step 3 - Multiply array with weights

IF(B3:B12<>"", LOOKUP($B$3:$B$12, $E$3:$E$8, F3:F8), 0)*C3:C12

returns {0; 120; 180; 360; 320; 20; 0; 50; 40; 160}.

Step 4 - Add numbers and return a total

The SUMPRODUCT function calculates the product of corresponding values and then returns the sum of each multiplication.

SUMPRODUCT(IF(B3:B12<>"", LOOKUP($B$3:$B$12, $E$3:$E$8, F3:F8), 0)*C3:C12)

returns 1250.

Step 5 - Calculate the total weight

The SUM function calculates a sum based on a cell range or array.

SUM(IF(B3:B12<>"", LOOKUP($B$3:$B$12, $E$3:$E$8, F3:F8), 0)

returns 31.

Step 6 - Divide total by total weight

SUMPRODUCT(IF(B3:B12<>"", LOOKUP($B$3:$B$12, $E$3:$E$8, F3:F8), 0)*C3:C12)/SUM(IF(B3:B12<>"", LOOKUP($B$3:$B$12, $E$3:$E$8, F3:F8), 0))

returns 40.3225806451613.

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16.5. Average ignore 0 (zero) and blanks

The AVERAGE function ignores empty cells automatically. If this is not the case, make sure Excel isn't using a different cell formatting, see section 1.1 and 1.2 above.

Formula in cell B11:

5+3+1=9. 9/3 = 3

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16.6 Get Excel *.xlsx file

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17. AVERAGE ignore NA()

The AVERAGE function ignores empty cells, text values, and boolean values automatically, however, it doesn't handle error values. The AVERAGE function returns an error if the data contains at least one error value.

This article describes a few different workarounds to this problem based on the Excel version you are using. Cell range C3:C9 contains some random numbers and a few #N/A errors, I will use this data to demonstrate a few formulas that can help you out.

17.1. AVERAGE function can't handle errors

#N/A error is sometimes used to show gaps in charts, however, the AVERAGE function can't handle errors, shown in C11 in the picture above.

Formula in cell C11:

Evaluate formula

Step 1 - Populate function

The AVERAGE function calculates the average of numbers in a cell range. In other words, the sum of a group of numbers and then divided by the count of those numbers.

AVERAGE(number1, [number2], ...)

AVERAGE(C3:C9)

becomes

AVERAGE({5; 3; 7; #N/A; 4; #N/A; 4})

Note that cell reference C3:C9 evaluates to an array with a beginning and ending curly bracket. Values are delimited by a semicolon meaning the values are arranged horizontally.

Your Excel software may show something else than the semicolon, it is determined by your regional settings.

Notice the error value #N/A is displayed in two locations in the array, they correspond to the values in cell C3:C9.

Step 2 - Calculate the average

AVERAGE({5; 3; 7; #N/A; 4; #N/A; 4})

returns #N/A. This shows that the AVERAGE function can't ignore error values, you need to somehow handle this using other functions.

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17.2. AVERAGE ignore NA() - Excel 2007 and later versions

There is an easy workaround, the AVERAGEIF function allows you to ignore #N/A errors. It was introduced in Excel 2007.

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Explaining formula

Step 1 - Populate arguments

The AVERAGEIF function returns the average of cell values that are valid for a given condition.

AVERAGEIF(range, criteria, [average_range])

range - C3:C9
criteria - "<>#N/A"
[average_range] - empty

The larger and smaller than signs are the same as "not equal to".

Step 2 - Evaluate AVERAGEIF function

AVERAGEIF(C3:C9,"<>#N/A")

returns 4.6

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17.3. AVERAGE ignore NA() - earlier versions

If you have an Excel version earlier than 2007, the ISERROR function works just as fine. The downside is that you need to enter the formula as an array formula.

Array formula in cell C17:

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17.3.1 How to enter an array formula

To enter an array formula, type the formula in a cell then press and hold CTRL + SHIFT simultaneously, now press Enter once. Release all keys.

The formula bar now shows the formula with a beginning and ending curly bracket telling you that you entered the formula successfully. Don't enter the curly brackets yourself.

17.3.2 Explaining formula

Step 1 - Identify error values

The ISERROR function returns TRUE if a value is an error value.

ISERROR(value)

ISERROR(C3:C9)

returns {FALSE; FALSE; FALSE; TRUE; FALSE; TRUE; FALSE}

Step 2 - Replace FALSE with corresponding number

The IF function returns one value if the logical test is TRUE and another value if the logical test is FALSE.

IF(logical_test, [value_if_true], [value_if_false])

IF(ISERROR(C3:C9),"",C3:C9)

returns {5; 3; 7; ""; 4; ""; 4}.

Step 3 - Calculate average

The AVERAGE function calculates the average of numbers in a cell range. In other words, the sum of a group of numbers and then divided by the count of those numbers.

AVERAGE(number1, [number2], ...)

AVERAGE(IF(ISERROR(C3:C9),"",{5; 3; 7; #N/A; 4; #N/A; 4}))

returns 4.6

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17.4. AVERAGE ignore #N/A for non-contiguous cell ranges

The image above demonstrates a formula that calculates an average based on two non-contiguous ranges and ignores error values.

Array formula in cell C11:

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17.4.1 Explaining array formula in cell C11

Step 1 - Handle errors in C3:C9

The IFERROR function lets you catch most errors in Excel formulas, it lets you specify a new value replacing the old error value.
IFERROR(value, value_if_error)

IFERROR(C3:C9,"")

returns {5; 3; 7; ""; 4; ""; 4}.

Step 2 - Handle errors in E3:E9

IFERROR(E3:E9,"")

returns {11; 10; 16; ""; 13; ""; 15}

Step 3 - Calculate average

The AVERAGE function calculates the average of numbers in a cell range. In other words, the sum of a group of numbers and then divided by the count of those numbers.

AVERAGE(number1, [number2], ...)

AVERAGE(IFERROR(C3:C9,""),IFERROR(E3:E9,""))

returns 8.8

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17.5 Get Excel *.xlsx file

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18. AVERAGE based on criteria

This section demonstrates two formulas that calculate averages, the first formula calculates an average based on criteria, and the second formula uses both criteria and two other conditions applied to an adjacent column using AND logic.

18.1. AVERAGE based on criteria

The array formula in cell D14 calculates an average based on multiple criteria in cell range B14:B15. If value in column C is equal to B14 or B15 the amount in column D on the same row is included in the average.

18.1.1 How to enter an array formula

To enter an array formula, type the formula in a cell then press and hold CTRL + SHIFT simultaneously, now press Enter once. Release all keys.

The formula bar now shows the formula with a beginning and ending curly bracket telling you that you entered the formula successfully. Don't enter the curly brackets yourself.

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18.1.2 Explaining formula in cell D14

Step 1 - Count cells based on criteria

You can't use AVERAGEIF or AVERAGEIFS function in this example, as far as I know. The COUNTIF function allows you to check if at least one out of multiple values are found in a cell range.

Note that I am using multiple values in the second argument, the COUNTIF function returns an array that indicates where group A or B is.

COUNTIF(range, criteria)

COUNTIF(B14:B15, C3:C11)

becomes

COUNTIF({"A";"B"},{"A";"B";"C";"A";"B";"C";"B";"B";"C"})

and returns {1; 1; 0; 1; 1; 0; 1; 1; 0}. The image below shows the array next to column Amount.

If group is "A" or "B" the corresponding cell on the same row is 1 in the column without a name (next to column Amount).

Step 2 - Replace 1 with the corresponding amount

The IF function lets you filter values in column D based on the COUNTIF function that serves as a logical test in this case.

IF(logical_test, [value_if_true], [value_if_false])

IF(COUNTIF(B14:B15, C3:C11), D3:D11, "")

becomes

IF({1; 1; 0; 1; 1; 0; 1; 1; 0}, D3:D11, "")

and returns

{360; 740; ""; 760; 980; ""; 60; 740; ""}

Step 3 - Calculate average

The AVERAGE function then returns the average from the values in the array ignoring the blanks.

AVERAGE(number1, [number2], ...)

AVERAGE(IF(COUNTIF(B14:B15,C3:C11),D3:D11,""))

becomes

AVERAGE({360;740;"";760;980;"";60;740;""})

returns 606.6667 in cell D14.

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18.2. AVERAGE - AND OR logic

The following array formula calculates an average based on two conditions, if group is equal to A OR B AND ID is less than 105 AND larger than 100.

How to enter an array formula

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18.2.1 Explaining formula

Step 1 - First condition

The COUNTIF function allows you to check if at least one out of multiple values are found in a cell range.

Note that I am using multiple values in the second argument, the COUNTIF function returns an array that indicates where group A or B is.

COUNTIF(range, criteria)

COUNTIF(B14:B15, C3:C11)

becomes

COUNTIF({"A"; "B"},{"A"; "B"; "C"; "A"; "B"; "C"; "A"; "B"; "C"})

and returns {1; 1; 0; 1; 1; 0; 1; 1; 0}.

Step 2 - Second condition

The less than character is a logical operator that checks if the numbers in B3:B11 are smaller than 105, the result is a boolean value TRUE or FALSE.

B3:B11<105

becomes

{101; 102; 103; 104; 105; 106; 107; 108; 109}<105

and returns

{TRUE; TRUE; TRUE; TRUE; FALSE; FALSE; FALSE; FALSE; FALSE}.

Step 3 - Third condition

The greater than character is a logical operator that checks if the numbers in B3:B11 are larger than 100.

B3:B11>100

becomes

{101; 102; 103; 104; 105; 106; 107; 108; 109}>100

and returns

{TRUE; TRUE; TRUE; TRUE; TRUE; TRUE; TRUE; TRUE; TRUE}.

Step 4 - Multiply arrays

There are three logical expressions in the first IF argument COUNTIF(B14:B15,C3:C11)*(B3:B11<105)*(B3:B11>100).

The asterisk multiplies the arrays, 1 indicates a location where all three logical tests return TRUE and FALSE if at least one returns FALSE.

The array returned from the COUNTIF function is in the first column above, B3:B11<105 is in the second column, and B3:B11>100 is in the third column.

The first row: 1*TRUE*TRUE equals 1. All three logical tests are TRUE.

COUNTIF(B14:B15, C3:C11)*(B3:B11<105)*(B3:B11>100)

becomes

{1; 1; 0; 1; 1; 0; 1; 1; 0}*{TRUE; TRUE; TRUE; TRUE; FALSE; FALSE; FALSE; FALSE; FALSE}*{TRUE; TRUE; TRUE; TRUE; TRUE; TRUE; TRUE; TRUE; TRUE}

and returns

{1; 1; 0; 1; 0; 0; 0; 0; 0}.

Step 5 - Replace 1 with the corresponding amount

The IF function lets you filter values in column D based on the COUNTIF function that serves as a logical test in this case.

IF(logical_test, [value_if_true], [value_if_false])

The corresponding value on the same row is 360 and is included in the AVERAGE calculation.

IF(COUNTIF(B14:B15, C3:C11)*(B3:B11<105)*(B3:B11>100), D3:D11,"")

becomes

IF({1; 1; 0; 1; 0; 0; 0; 0; 0}, D3:D11,"")

becomes

IF({1; 1; 0; 1; 0; 0; 0; 0; 0}, {360; 740; 500; 760; 980; 530; 60; 740; 200},"")

and returns

{360; 740; ""; 760; ""; ""; ""; ""; ""}.

Step 6 - Calculate average

The AVERAGE function then returns the average from the values in the array ignoring the blanks.

AVERAGE(number1, [number2], ...)

AVERAGE(IF(COUNTIF(B14:B15, C3:C11)*(B3:B11<105)*(B3:B11>100), D3:D11,""))

becomes

AVERAGE({360; 740; ""; 760; ""; ""; ""; ""; ""})

There are two more values that are also in the calculation found in the second and fourth row, 740 and 760.

The average is 620 and is displayed in cell B18.

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18.3. Get Excel *.xlsx file

AVERAGE based on multiple criteria

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'AVERAGE' function examples

Functions in 'Statistical' category

The AVERAGE function function is one of 73 functions in the 'Statistical' category.

Excel function categories

Excel categories

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