In this article, you will learn how to use the AVERAGEIFS function in Google Sheets. The AVERAGEIFS function is helpful when you want to calculate the average of values under multiple standards. If you're going to calculate the average of values without any condition or with a condition, you should use the AVERAGE function or AVERAGEIF formula instead.
The general syntax is as follows:
Average_range: This is the range containing the values (for numerator) based on which the formula calculates the average number. You can input a range you include as “criteria_range” in the “average_range”.
Criteria_range1: This is the range that the formula searches for the criterion. The formula counts the number of items that meet the first standard in the field (for the denominator)
Criterion1: This is a condition that an item incorporated in the average needs to meet. This value could be text, date, number, etc.
In the end, the AVERAGEIFS function counts the number of items that meet all conditions incorporated in the formula and computes the average of their values.
As mentioned at the beginning, this function is helpful when you want to compute the average figure depending on multiple criteria. With this function, you don’t need to calculate a total figure for a numerator and the number of items for a denominator separately to seek an average number. Assume you are a finance manager and need to get an average revenue of companies that meet the following conditions from the data set shown in the screenshot below.
Condition 1: Establishment date is between 12/31/2010 and 12/31/2020 (including both beginning and end dates of the range)
Condition 2: Exists in “North” country
Condition 3: The number of employees is equal to or more than 500
The formula in the screenshot above incorporates the following arguments.
Entire formula - cell reference version in cell C29 - is as follows:
Average_range: $F$3:$F$17 - a column showing revenues
Criteria_range1: $C$3:$C$17 - a column showing establishment dates
Criterion1: $C$25 or “>=12/31/2010” (Manual Input)
Criteria_range2: $C$3:$C$17 - same as above
Criterion2: $C$26 or “<=12/31/2020” (Manual Input)
Criteria_range3: $D$3:$D$17 - a column showing countries
Criterion3: $C$27 or “North” (Manual Input)
Criteria_range4: $E$3:$E$17 - a column showing the number of employees
Criterion4: $C$28 or “>=500” (Manual Input)
Criterion 1 and 2 correspond to Condition 1 (establishment date), Criterion 3 is tied with Condition 2 (country), and Criteiron 4 is for Condition 3 (employee number). Why do we have four criteria in the formula for the three conditions we assumed? That is because we broke down the first condition about the establishment dates into two bars in the AVERAGEIFS function.
The formula calculates the average revenue of the companies highlighted in green after taking all requirements above into account.
Key points are;
The difference between AVERAGE and AVERAGEIFS functions is that the AVERAGE function simply calculates the average of values in a specified range, whereas the AVERAGEIFS function allows you to compute the average of values in a particular range depending on multiple conditions.
Are you learning this function to visualize financial data, build a financial model, or conduct financial analysis? If so, LiveFlow may help you automate manual workflows and keep numbers updated in real-time. You can access more than fifty financial templates on our website, from the simple Income Statement to Multi-Currency Consolidated Financial Statement. You can also customize these templates as you want without breaking the automated data inflow.
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If you don’t get the solution you are looking for in this article, or you have further questions related to mathematics or statistics, you may find the answers in the following articles.
Go to the following articles to learn basic formulas in Google Sheets.
How to Do Math in Google Sheets for Beginners
ADD Function in Google Sheets: Explained
MINUS Function in Google Sheets: Explained
DIVIDE Function in Google Sheets: Explained
MULTIPLY Function in Google Sheets: Explained
PRODUCT Function in Google Sheets: Explained
How to Use SUM Function in Google Sheets
How to Use SUMPRODUCT Formula in Google Sheets
How to Use MAX Function in Google Sheets
How to Use MIN Function in Google Sheets
How to Use MEDIAN Function in Google Sheets
How to Use AVERAGE Formula in Google Sheets
How to Use MODE Function in Google Sheets
MOD Function in Google Sheets: Explained
Navigate to the pages below to learn how to sum, count, or average numbers with a condition or multiple conditions.
How to Use SUMIF Function in Google Sheets - sum up the numbers that meet a criterion
SUMIFS Function in Google Sheets: Explained - sum up the numbers that meet multiple criteria
How to Use COUNTIF Function in Google Sheets - count the number of cells that meet a requirement
How to Use COUNTIFS function in Google Sheets - count the number of cells that meet multiple requirements
AVERAGEIF Function in Google Sheets: Explained - average the figures that meet a standard
AVERAGE.WEIGHTED Function in Google Sheets: Explained - use this formula to calculate the weighted average
MAXIFS Function in Google Sheets: Explained - seek for the maximum value that meets specific criteria
MINIFS Function in Google Sheets: Explained - seek for the minimum value that meets specific criteria
Visit the following post if you are interested in learning how to count the number of specific cells.
COUNT Function in Google Sheets: Explained - count the number of cells containing numeric values (except for blank ones)
COUNTA Function in Google Sheets: Explained - count the number of cells incorporating all types of values containing text and date, except for blank ones
COUNTBLANK Function in Google Sheets: Explained - count the number of blank cells
COUNTUNIQUE Function in Google Sheets: Explained - count the number of unique cells
You can learn about other Google Sheets formulas and tips that are not mentioned here on this page: LiveFlow‘s How to Guides
Learn how to do this step-by-step in the video below 👇