How to Calculate Average in Excel (Ignoring Zeros)
When analyzing data in Excel, a common pitfall occurs when your dataset contains zeros. A standard average calculation treats "0" as a valid number, which drastically drags down your result. This is often incorrect for scenarios like missing test scores or days with no sales.
Below are the two best methods to exclude zeros from your equation effectively.
Method 1: The Modern Approach (Excel 2007+)
For almost all modern users, the AVERAGEIF function is the cleanest solution. It tells Excel to look at a range and average the numbers only if they meet specific criteria.
Select the cell where you want the result and paste the following formula:
=AVERAGEIF(A1:A5,"<>0")
How it works:
1. A1:A5: Represents your data range.
2. "<>0": This is the logic operator meaning "Not Equal to 0".
The Result:
Method 2: Legacy Excel (2003 & Older)
If you are working on a legacy system or need strict backward compatibility, AVERAGEIF will not work. Instead, you must use an Array Formula combination of AVERAGE and IF.
=AVERAGE(IF(A1:A5<>0,A1:A5))
⚠️ CRITICAL STEP:
Because this is an Array Formula, you cannot just press Enter. You must press Ctrl + Shift + Enter on your keyboard. If done correctly, Excel will wrap your formula in curly braces { } automatically.
The Result:
Note: If you do not use Ctrl+Shift+Enter, you may get an incorrect result (e.g., 2.4 instead of the actual non-zero average).
Frequently Asked Questions (FAQ)
Does AVERAGEIF work in Google Sheets?
Yes, the AVERAGEIF function works exactly the same way in Google Sheets as it does in Excel.
What happens if I just use =AVERAGE()?
The standard AVERAGE function includes zeros in the denominator count. If you have numbers 10, 0, and 20, the average will be 10 (30 divided by 3). If you exclude the zero, the average becomes 15 (30 divided by 2).
Can I exclude blank cells as well?
Excel's standard AVERAGE function automatically ignores blank cells by default. You do not need a special formula for blanks, only for zeros.




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