 # How To Calculate Average In Excel

by Jacky Chou
Updated on

## Key Takeaway:

• 1. Calculating averages in Excel is a useful tool for analyzing numerical data, and can be done with the AVERAGE function, SUM and COUNT functions, SUBTOTAL function, and SUMPRODUCT function.
• 2. Understanding error values in average calculations, dealing with blank cells and NA values, and using conditional formatting to highlight averages above or below a certain value are key tips for accurate and efficient average calculations.
• 3. When calculating weighted averages, it is important to use the SUMPRODUCT function and attribute the appropriate weights to the values being averaged.

Do you struggle to efficiently calculate averages in Excel? Discover how to make quick work of this task with our step-by-step guide. Transform your Excel experience and never struggle with averages again.

## Overview of calculating averages in Excel

Calculating averages in Excel is a fundamental function that finds frequent use in data analysis processes. Here is a three-step guide on how to calculate averages in Excel to aid in data analysis:

1. Select the cells that contain the data you want to average.
2. After selecting the cells, click on the ‘Formulas’ tab and then on the ‘More Functions’ option. Select ‘AVERAGE’ from the dropdown menu, and press enter to get the average of the selected cells.
3. Alternatively, Use the shortcut formula `=AVERAGE (A1:A10)` to get the average of the values in cells A1 to A10.

In addition to the above, users can also use other built-in functions in Excel to calculate averages, such as ‘SUM’ and ‘COUNT.’ By dividing the two functions, the user can get the average. These functions are useful when filtering data in Excel.

Calculating averages has come a long way since the inception of Excel. The feature was first introduced in Microsoft Excel 2003 as part of the sheet function. Since then, Excel has undergone several upgrades, and users can now calculate averages using several built-in formulas and functions, which have significantly improved the efficiency and accuracy of this process. Image credits: chouprojects.com by Adam Washington

## Calculating the average of a range of cells

Want to calculate the average of cells? Excel can help! There are two methods to try. ‘Using the AVERAGE function’ and ‘Using the SUM and COUNT functions’ are both quick and easy ways to get the average value. Let’s explore each one. Image credits: chouprojects.com by David Arnold

### Using the AVERAGE function

To compute the average of a given range of cells in Excel, one can utilize the AVERAGE function. Follow these steps to use this function efficiently:

1. Select a cell where you want to display the result.
2. Type an equal sign (=) and then the word AVERAGE.
3. Locate the first cell or range of cells you want to include in your calculation and select them.
4. Separate each cell reference with a comma (,).
5. Closing parenthesis is required after selecting all the cells or ranges you need.
6. Press Enter to calculate and display your averaged result!

Additionally, it is important to note that blank cells will not be accounted for in the calculation. However, if you include zero values in your range of cells, they will be taken into consideration.

Pro Tip: The AVERAGE function in Excel can also be used on non-contiguous ranges of data by simply holding down the Ctrl key while clicking on each individual cell.

### Using the SUM and COUNT functions

For computing the average of a range of cells, combining SUM and COUNT functions in Excel is a viable option. This can be done by utilizing the sum of all values in the range and dividing it by the count of cells containing numbers.

Here’s a 5-Step Guide to using this technique:

1. Select a cell where you wish to display the average result.
2. Enter “=SUM(” followed by your desired range of cells (separated with commas).
3. Add “)/COUNT(” immediately after closing parenthesis for Sum function.
4. Type in the same cell range for which you wish to calculate an average.
5. End equation with close parenthesis for Count function, then hit Enter to view result.

It is important to note that including blank cells or text cells within the selected range will return an error value rather than an accurate calculation. Therefore, keeping tab on these details is vital when using this technique.

To achieve best results with this method, ensure that data is organized neatly, select only relevant ranges such as those without any extraneous or non-numerical entries, and consider using conditional formatting or filters when necessary.

By following these guidelines and incorporating SUM and COUNT functions efficiently, users can get more accurate calculations for their data sets while also making use of Excel’s built-in features and functions.

Filtering out the bad apples has never been easier with Excel’s average calculation feature.

## Calculating the average of filtered data

Calculate averages in Excel? The SUBTOTAL function can help! It ignores hidden rows. Gives accurate averages. Let’s explore how to use it. A solution for calculating averages! Image credits: chouprojects.com by Adam Duncun

### Using the SUBTOTAL function

When filtering data, it can be useful to calculate the average of the filtered results. One way to achieve this is by using the SUBTOTAL function in Excel.

1. To begin, select the cell where you want to display the average.
2. Type in the formula “=SUBTOTAL(101,range)” ensuring that “range” refers to the filtered data range.
3. Press Enter to calculate and display the average for only the filtered data.
4. If you change the filter criteria or add new data, Excel will automatically recalculate and update the average.
5. You can also use different functions with SUBTOTAL such as SUM, COUNT, MAX and MIN by changing “101” to a different number depending on which function you want to use.
6. The SUBTOTAL function is especially useful as it excludes hidden rows unlike other functions such as AVERAGE or SUMIF which take into account all rows in a range even if they are hidden due to filtering.

It’s important to note that when using SUBTOTAL, Excel treats hidden rows as if they were not even there. Therefore, if a row has been manually hidden in addition to being filtered out, it will not be included in any calculations.

Using the SUBTOTAL function can save time by automatically calculating averages based on specific filter criteria without having to change formulas each time new data is added or filtering changes occur.

A finance executive once shared that they saved hours of work every week by implementing such functions while reporting their KPIs.

Get ready to do some math that requires a little more weightlifting than your typical calculations.

## Calculating the weighted average of a range of cells

Get a quick understanding of how to calculate the weighted average of a range of cells in Excel using the SUMPRODUCT function! Go through this section. It’ll help you make precise calculations. Image credits: chouprojects.com by Harry Arnold

### Using the SUMPRODUCT function

To efficiently calculate the weighted average of a range of cells, you can use the powerful SUMPRODUCT function in Excel.

Here is a simple 4-Step Guide on using the SUMPRODUCT function to calculate the weighted average:

1. Select an empty cell where you want to display the weighted average
2. Type the function “`=SUMPRODUCT(range1, range2)/SUM(range2)`
3. Replace “range1” with the cells you want to multiply by their corresponding weights
4. Replace “range2” with the cells holding the weight values

Not only does this method accurately calculate the weighted average, but it also saves time and reduces complexity by eliminating manual formulas.

It is important to note that when using SUMPRODUCT function for multiplying two or more ranges of numbers, ensure that each range corresponds directly with each other – meaning they are of equal size and location.

Don’t miss out on an efficient way to quickly and accurately calculate your data’s weighted average. Use SUMPRODUCT today!

Get ahead of the curve by mastering these Excel averaging techniques – it’s like having a magic wand for data analysis.

## Tips for calculating averages in Excel

Calculating averages in Excel? Get it done quick! Learn the error values, handle blank cells and NA values like a pro, and use conditional formatting to highlight any averages that are above or below your desired value. Boom! Image credits: chouprojects.com by Yuval Arnold

### Understanding error values in average calculations

When performing average calculations in Excel, it’s crucial to understand error values. These values occur when a cell is missing data or contains an error that affects the calculation. To handle this issue, ensure that the cells are correctly formatted and that invalid entries are either corrected or removed. An average calculation with inaccurate data could distort results, leading to wrong conclusions.

It’s noteworthy that understanding error values is of utmost importance for accuracy in financial calculations where precision is paramount. Ensuring clean data input in each cell will guarantee accurate analysis and keep any discrepancies at bay while maintaining clarity in computations.

Moreover, another essential aspect to consider when calculating averages in Excel is the range of data used. Including irrelevant data can cause skewed results, implying an incorrect distribution of scores within your group. Therefore, always remember to select only the relevant cells for an accurate and meaningful result.

In one instance, a colleague calculated their average incorrectly due to entering wrong amounts into Excel cells without comprehending error values. As a consequence, they missed spotting outdated client information in one of the columns which contributed to generating misleading output and resulted in an unproductive meeting with the senior management team. This highlights how vital it is to thoroughly check entered information before proceeding with calculations to deliver accurate reports and make informed decisions effectively.

Excel has trust issues with blank cells and NA values, but don’t worry, we’ll teach you how to win back its love.

### Dealing with blank cells and NA values

Addressing Missing Data in Excel Averages Calculation

To ensure precision in calculating averages in Excel, it is vital to deal with blank cells and NA values correctly. Several methods can help handle these missing data points and guarantee accurate computation.

Here’s a six-step guide on dealing with missing data when calculating averages in Excel:

1. Identify blanks and NAs: Before proceeding with any calculation, determine the number of blank cells and NA values present in your dataset.
2. Exclude missing values: To exclude blank or NA cells from calculations, use the `AVERAGEIF` or `AVERAGEIFS` function by specifying a particular criterion for inclusion.
3. Include Missing Values: If zero or null are possible values that affect the calculation, use the `AVERAGE` function instead of `AVERAGEIF` or `AVERAGEIFS`. This will treat empty cells as zero in its calculation.
4. Manually add missing values: You can also manually add default (or zero) values using the `IFERROR` function to avoid errors caused by non-numeric entries.

Example:
=AVERAGE(IFERROR(A2:B2),0)

5. Cleaning Data Sets: If various issues but mostly missing data points are frequent causes of errors when computing averages in a large dataset, consider using sorting tools such as filters to remove all unwanted elements from consideration while computing.
6. Treat Blanks Differently: When looking at various datasets like gradesheet where some students haven’t attempted the test at all; simply removing eligible numbers from ‘Average’ numeric formulas wasn’t always practical. For cases like this, you can have categories like ‘Absent’, ‘Incomplete’, or ‘Not Applicable’ so they do not affect final calculations.

It is essential to note that when dealing with blank cells and NA values, different scenarios demand distinct methods of handling. Not every cell or value will be relevant to your calculation.

Lastly, here are some suggestions that can lead to accurate average calculations:

1. Ensure data entry is consistent throughout.
2. If unfamiliar with excel functions, utilize online forums or tutorials before applying any formulae.
3. Use filters to see specific categories’ statistics instead of included irrelevant figures in calculations.

Following these tips will save time and result in precise average calculations.

Highlighting Excel averages is like highlighting your ex’s flaws – it just makes them more obvious.

### Using conditional formatting to highlight averages above or below a certain value

To highlight values above or below a certain point in Excel using conditional formatting is an essential method for many data analysts. Some people employ this technique to single out particular trends, such as spotting measurable variations in sales figures. Ultimately, it enables the analysis of big data sets more effectively.

Here’s how you can use conditional formatting to determine averages above or below a specific value:

1. Open the worksheet that holds your dataset and select the range of cells you would like to work on.
2. On the ‘Home’ tab, locate ‘Conditional Formatting’, which will be next to your tab ‘Font.’
3. Click ‘Highlight Cell Rules’, then click on ‘Lesser Than Or Equal To’ if you’re attempting to highlight values less than a certain figure, or ‘Greater Than Or Equal To’ if attempting to emphasize higher ones.
4. Input the limit; for instance, supposing we desired highlighting numbers that were beneath ten only; we’d enter 10 here.
5. Select your preferred format: font fill color and text color are popular choices among data scientists because they offer very contrasting shades.
6. To put these adjustments into effect throughout your dataset range, press OK twice.

It should be noted that tailoring those configurations just requires performing further steps based on one’s specific requirements.

Furthermore, another approach you might take is by utilizing a Color Scale rule rather than Highlight Cells Rule. Color Scales can be indicated by three colours – red-yellow-green – with positions between those colors differing depending on concentration. In most Excel versions presently available today, there are at least five or six distinct Color Scale preferences provided out of the box.

According to Forbes Magazine report, “In today’s digital age of information overload, approximately 2.5 quintillion bytes of data are produced each day” (Forbes, 2018).

## Five Facts About How to Calculate Average in Excel:

• ✅ The AVERAGE function in Excel calculates the arithmetic mean of a range of cells. (Source: Microsoft)
• ✅ To calculate average with conditions, use the AVERAGEIF or AVERAGEIFS function. (Source: Exceljet)
• ✅ You can also use the SUM function with COUNT function to calculate average in Excel. (Source: The Spreadsheet Guru)
• ✅ When calculating average, empty cells or cells with text are ignored by Excel by default. (Source: Excel Easy)
• ✅ Excel provides a quick shortcut to calculate average, using the AutoSum button on the Home tab. (Source: Dummies)

## FAQs about How To Calculate Average In Excel

### How do I calculate average in Excel?

To calculate average in Excel, you need to use the AVERAGE function. Simply select the range of cells you want to average and type =AVERAGE(range) in the cell where you want the result to appear. Press Enter and Excel will return the average of the selected cells.

### Can I calculate average for non-adjacent cells?

Yes, you can calculate average for non-adjacent cells in Excel. Simply select the first range of cells, hold down the Ctrl key, and select the additional ranges of cells you want to include in the average calculation. Then, use the AVERAGE function as usual.

### What is the difference between AVERAGE and AVERAGEIF functions?

The AVERAGE function calculates the average of a range of cells, while the AVERAGEIF function calculates the average of a range of cells based on a specified criterion. For example, if you want to calculate the average of cells in a range that meet a specific condition, such as all the cells with values greater than 10, you can use the AVERAGEIF function.

### Can I exclude certain values from the average calculation?

Yes, you can exclude certain values from the average calculation by using the AVERAGEIF function with a criteria that excludes those values. For example, if you want to calculate the average of a range of cells, excluding any cells with a value of 0, you could use =AVERAGEIF(range,”<>0″). This will calculate the average of all cells in the range that do not equal 0.

### What if some cells in the selected range are empty or contain text?

If some cells in the selected range are empty or contain text, Excel will ignore them in the calculation of the average. For example, if you have a range of cells A1:A5, and A3 is empty while A4 contains text, Excel will only calculate the average of cells A1, A2, and A5.

### Can I use AVERAGE function with filtered data?

Yes, you can use the AVERAGE function with filtered data in Excel. Simply select the column or range of cells that you want to calculate the average for, click on the Data tab, and then click on the Filter button. Once the filter is applied, Excel will calculate the average for only the visible cells.

Auther name

Jacky Chou is an electrical engineer turned marketer. He is the founder of IndexsyFar & AwayLaurel & Wolf, a couple of FBA businesses, and about 40 affiliate sites. He is a proud native of Vancouver, BC, who has been featured on Entrepreneur.comForbesOberlo, and GoDaddy.