AVERAGE Function in Excel

=AVERAGE(number1, [number2], ...)
↑Click any parameter above to learn what it means — it'll highlight in the live example below.
  • number1: First number or range. The first cell, number, or selected range of cells you want to average (e.g., A1:A10). Required.
  • number2: Additional numbers or ranges. Any extra cells or ranges you want to include. You can add up to 255 different items! Optional.

What is the AVERAGE function in Excel?

The AVERAGE function finds the average of a group of numbers. It adds all the numbers together and divides the total by the number of values.

Think of sharing a restaurant bill equally with friends. Excel adds up the total cost of the food and tells you exactly how much each person needs to pay.

StatisticalBeginnerWorks in Excel All versions
!Golden Rules

AVERAGE's 2 golden rules

Reading these is a must. Skipping them is the #1 reason AVERAGE formulas break.

If a cell is completely blank, the AVERAGE function ignores it. If a cell contains a 0, the AVERAGE function includes it in the calculation. This will decrease the final average. Make sure a zero represents an actual value, not a temporary number for missing data.
The standard AVERAGE function only calculates numbers. If a cell in the selected range contains words, letters, or symbols, Excel ignores that cell during the calculation. If you want text to count as a zero, use the AVERAGEA function instead.

Learn with Example: AVERAGE

  1. Step 1: Understand what we need We need to find the average invoice amount. The AVERAGE function will add all the invoice amounts together and divide the total by the number of invoices.
  2. Step 2: Start the formula Click on the cell below the invoice amounts where you want the final average to appear. Type: =AVERAGE(
  3. Step 3: Select your numbers Use your mouse to highlight all the invoice amounts from the first one to the last one. Type: =AVERAGE(D3:D6) number1 The group of numbers you want Excel to average.
  4. Step 4: Check your final result Press Enter to see the average invoice value for the quarter. 2910

You have a list of paid invoices from different clients this quarter. How do you find the average invoice amount?

D7
ƒx
=AVERAGE(number1,[number2])
ABCD
1Paid Invoices
2Invoice IDClient NameProject TypeInvoice Amount
3INV-8041Acme CorpRetainer4500
4INV-8042Globex IncOne-off1250
5INV-8043InitechRetainer5000
6INV-8044Umbrella CorpConsulting890
7Average Invoice
8
9
10
Ready
Step-by-step guide1 / 4
Step 1: Understand what we need

We need to find the average invoice amount. 

The AVERAGE function will add all the invoice amounts together and divide the total by the number of invoices.

When to use AVERAGE

Use the AVERAGE formula anytime you need to calculate the overall average of a group of numbers.

Common scenarios for using AVERAGE:

  • Grading and scoring: Find a student's final grade by calculating the average of all their test scores from the semester.
  • Sales prediction: Find your average daily sales from last month to estimate next week's sales.
  • Expense tracking: Find your average monthly grocery bill to predict how much money you need to save for next month.
  • Tracking results: Calculate the average time it takes for a team to reply to customer emails.

When not to use AVERAGE

The AVERAGE formula is extremely popular, but it is not the best choice in these specific situations:

  • When you only want to average specific items: If you have a large list of expenses but only want to find the average cost of "Travel," the standard AVERAGE formula will not work. Instead, use the AVERAGEIF function.
  • When you need to count text as zero: If a student misses a test and the teacher types "Absent" instead of "0", the standard AVERAGE function completely ignores the word "Absent" and their grade stays higher than it should be. Instead, use the AVERAGEA function, which treats text words as a zero.

AVERAGE vs AVERAGEIF vs AVERAGEA

If you are wondering whether to use AVERAGE, AVERAGEIF, or AVERAGEA, use this quick comparison table to see exactly which tool is best for your data.

FeatureAVERAGEAVERAGEIFAVERAGEA
Best Used ForStandard, everyday mathAveraging based on a ruleCounting text as a zero
Ignores Empty Cells?YesYesYes
Ignores Text Words?YesYesNo (Counts as 0)
Ignores Zeroes (0)?NoNoNo
Can Use Conditions?NoYes (Limit: 1 rule)No
Excel VersionAll VersionsAll VersionsAll Versions
Ease of UseBeginnerIntermediateIntermediate

Bottom Line: Use AVERAGE for most everyday calculations. If you need extra conditions or special handling, use functions like AVERAGEIF or AVERAGEA.

Common Mistakes When Using AVERAGE

Getting the #DIV/0! Error because your selected cells are empty or contain text
Excel shows this error when it cannot find any numbers to average. This usually happens if your selected range (like A1:A10) contains only blank cells or if all the values are stored as text. Ensure your selected cells contain actual numbers.
Getting an incorrect average because your numbers are stored as text
If your AVERAGE result looks too high or too low, some numbers in your range may be stored as text. Because the AVERAGE function completely ignores text values (like "100" instead of 100), they will not be included in your calculation.
Getting an incorrect average because hidden rows are still being calculated
The AVERAGE function includes all cells in your selected range (like A1:A100), even if some of those rows are hidden or filtered out. If you only want to average the visible numbers on your screen, use the SUBTOTAL function instead.
Formula fails or is overly complex because AVERAGE is wrapped inside a SUM function
You do not need to wrap the AVERAGE function inside a SUM function (like =SUM(AVERAGE(A1:A10))). The AVERAGE function already adds the values together automatically before dividing them. Keep your formula clean by just using =AVERAGE(A1:A10).
For a complete list of formula errors (like #VALUE! or #NAME?) and how to fix them, see our Common Excel Errors Troubleshooting guide.

Frequently Asked Questions about AVERAGE

Quick answers about AVERAGE

Does AVERAGE ignore blank cells?

Yes. If a cell is completely empty, the AVERAGE function ignores it. The empty cell will not change your final calculation.

Does AVERAGE ignore zeroes?

No. If a cell contains the number 0, Excel includes it in the calculation. This will decrease your final average. If you want to ignore zeroes, use the AVERAGEIF function instead.

Can I average cells that are not next to each other?

Yes. Hold down the Ctrl key (or Cmd on a Mac) and click cells in different locations. Excel automatically adds commas between them in your formula (e.g., =AVERAGE(A1, C4, F9)).

How do I round my average result?

You can limit the number of decimal places by putting the AVERAGE formula inside the ROUND function. For example, =ROUND(AVERAGE(A1:A10), 2) calculates the average and rounds it to 2 decimal places.

Does AVERAGE work across different worksheets?

Yes. You can average data from multiple worksheets in the same formula. Type =AVERAGE(, then click the other worksheet tabs to select the data before pressing Enter.

AVERAGE Practice Workbook

Download ready-to-use Excel files and practice AVERAGE hands-on

Complete Practice File
Complete Practice File
.xlsx · 75 KB
This file contains:
  • Basic example
  • Sales example
  • HR example
  • Finance example
  • Inventory example
  • Practice sheet
  • Solved sheet
Download Complete File
Reviewed by Grapte teamLast updated September 2026Tested in Microsoft Excel 365