AVERAGE adds all numeric values in the supplied arguments and divides by the count of those values. Blank cells are excluded from both the numerator (sum) and the denominator (count), so they do not deflate the average. Text cells are also excluded. Cells containing errors like #N/A or #DIV/0! cause AVERAGE to return an error -- wrap error-producing cells in IFERROR(cell,0) to treat them as zero, or use AGGREGATE(1,6,range) which ignores error values automatically. Dates are stored as numbers and are averaged numerically -- the result is a date serial number that displays as a date when formatted correctly. For a conditional average by category,
AVERAGEIF adds a single criterion. For multiple criteria simultaneously,
AVERAGEIFS handles them with AND logic. To double-check an AVERAGE result, you can manually verify using the
COUNT function to confirm how many cells were included in the denominator.