CFI-Excel-eBook

The Corporate Finance Institute Excel
Statistical
AVERAGE
Get the average of a group of numbers
number1 number2
…
How to calculate AVERAGE in Excel?
The AVERAGE function is categorized under Statistical functions. It will return
the average value of given series of numbers in Excel. It is used to calculate the
arithmetic mean of a given set of arguments in Excel. This guide will show you
step-by-step how to calculate the average in Excel.
As a financial analyst, the function is useful in finding out the average (mean) of
a series of numbers. For example, we can find out the average sales for the last
12 months for a business.
Formula
=AVERAGE(number1, [number2], …)
The function uses the following arguments:
1. Number1 (required argument) – It is the first number or a cell reference or
a range for which we want the average.
2. Number2 (optional argument) – They are the additional numbers, cell
references or a range for which we want the average. A maximum of 255
numbers is allowed.
How to use AVERAGE Function in Excel?
To understand the uses of the AVERAGE function, let us consider a few
examples:
corporatefinanceinstitute.com
166