The AVERAGE function calculates the arithmetic mean of a group of numbers. This guide explains how AVERAGE works and includes practical examples you can use immediately.
WHAT THE AVERAGE FUNCTION DOES
AVERAGE computes the mean by adding all numeric values in a range and dividing by the count of numbers. It automatically ignores text and empty cells, making it perfect for analyzing performance metrics, grades, sales figures, or any dataset where you need the central tendency.
WHEN TO USE AVERAGE
Use AVERAGE when you want to:
- Find the typical or central value in a dataset
- Analyze performance metrics, grades, or scores
- Calculate mean sales, temperatures, or other measurements
- Identify trends or compare groups of data
FORMULA SYNTAX
AVERAGE(number1, [number2], ...)| Argument | Description |
|---|---|
number1 | The first number, cell reference, or range |
number2 | Additional numbers, cell references, or ranges (optional) |
EXAMPLE 1: CALCULATE AVERAGE TEST SCORE
We want to find the average score for a group of students.
| A | B | |
|---|---|---|
| 1 | Student | Score |
| 2 | Alice | 85 |
| 3 | Bob | 92 |
| 4 | Carol | 78 |
| 5 | David | 96 |
=AVERAGE(B2:B5)Result: 87.75 ((85 + 92 + 78 + 96) ÷ 4)
Need help applying this? Try this in Numstro Builder
EXAMPLE 2: AVERAGE SALES ACROSS MULTIPLE MONTHS
We want to calculate average monthly sales excluding empty months.
| A | B | C | D | |
|---|---|---|---|---|
| 1 | Jan | Feb | Mar | Apr |
| 2 | 5000 | 6000 | 7500 |
=AVERAGE(A2:D2)Result: 6166.67 ((5000 + 6000 + 7500) ÷ 3, empty cell ignored)
Need help applying this? Try this in Numstro Builder
COMMON MISTAKES & EDGE CASES
- Empty cells and text are ignored (not counted as zeros)
- Cells containing 0 are included in the average calculation
- Error values like #DIV/0! will cause AVERAGE to return an error
- Use AVERAGEA to include text and logical values in calculation
- For conditional averages, use AVERAGEIF or AVERAGEIFS
RELATED FUNCTIONS
- AVERAGEIF — average with one condition
- AVERAGEIFS — average with multiple conditions
- MEDIAN — middle value instead of mean
- SUM and COUNT — components of average
FURTHER READING
Official Microsoft documentation:
AVERAGE — Microsoft Support