The AVERAGE function returns the arithmetic mean of any set of numbers given to it.
Contents:
Syntax
= AVERAGE(number1, [number2],...)number1 - the first number to averaged
[number2] - optional arguments, additional numbers to be averaged
Explanation
The AVERAGE function is part of the "Statistical" group of functions within Excel.
The AVERAGE function in Excel works by adding up a range of numerical values and then dividing the sum by the count of those values, giving you the arithmetic mean.
For example, if you have a range of values from A1 to A5, and you use the formula:
=AVERAGE(A1:A5)Excel will add up the values in cells A1 through A5, then divide that sum by 5 (the count of values in the range) to calculate the average.
Note:
Only cells that contain numerical values can be used. If a cell in the range contains text, logical values (TRUE/FALSE), or errors (#DIV/0!, #VALUE!, etc.), those values will be ignored in the calculation.
Different Types of Averages In Excel
The most common types of averages in Excel are:
AVERAGE: Calculates the arithmetic mean of a range of values. Used to summarize and analyze data that is normally distributed.
MEDIAN: Calculates the median of a range of values. Summarize and analyze data that is not normally distributed, or that contains outliers.
MODE: Calculates the mode of a range of values. Useful to analyze data that has multiple peaks or modes.
GEOMEAN: Calculates the geometric mean of a range of values. It is used to summarize data that is exponential or logarithmic in nature.
HARMEAN: Calculates the harmonic mean of a range of values. Good for data that is rate-based, such as speeds or rates of change.
Examples
How to Average a Range of Cells in Excel
In this example, we'll demonstrate how to take the average of a range of cells in Excel.
Using the AVERAGE function, you can quickly take the average of a row of numbers, a column of numbers, or even an array. Just type in the AVERAGE function and select the numbers that you would like to average.
How to take the Average of a column:
=AVERAGE(C3:C9)
How to take the Average of an array:
=AVERAGE(C3:C9)How to Take the Average the Results of Another Formula
The average function can also be used to average the results of other formulas.
In this table, we have a list of customers and sales across 2022 and 2023. If we wanted to know what the average sales we were making across these two years, we could use the following formula:
= AVERAGE(SUM(B2:B11),SUM(C2:C11))In this formula, we are individually summing up each year's sales, and taking the resulting average of those two numbers.
The sum of 2022 sales is $1,250, and the sum of 2023 sales is $1,270. So, our formula would actually look like this once the SUM was calculated:
= AVERAGE(1250, 1270)Once the average is taken of these two numbers, we are left with the correct average of $1,260 sales per year.