The AVERAGEIF function returns the average (arithmetic mean) of all the cells in a range that meet a given criteria.

AVERAGEIF takes 2 required arguments and 1 optional argument:

Syntax: AVERAGEIF(range, criteria, [average_range])

#1)
Using the AVERAGEIF function:
#2)
The arguments for the AVERAGEIF function are:
Argument Required? Description
range Required One or more cells to average, including numbers or names, arrays, or references that contain numbers.
criteria Required The criteria in the form of a number, expression, cell reference, or text that defines which cells are averaged.
average_range Optional The actual set of cells to average. If omitted, range is used.
#3)
A few more things:
Cells in range that contain TRUE or FALSE are ignored.
If a cell in average_range is an empty cell, AVERAGEIF ignores it.
If range is blank or a text value, AVERAGEIF returns the #DIV0! error value.
If a cell in criteria is empty, AVERAGEIF treats it as a 0 value.
If no cells in the range meet the criteria, AVERAGEIF returns the #DIV0! error value.
You can use the wildcard characters, question mark (?) and asterisk (*), in criteria. A question mark matches any single character; an asterisk matches any sequence of characters. If you want to find an actual question mark or asterisk, type a tilde (~) before the character.
average_range does not have to be the same size and shape as range. The actual cells that are averaged are determined by using the top, left cell in average_range as the beginning cell, and then including cells that correspond in size and shape to range. For example:

Summary

The AVERAGEIF function returns the average (arithmetic mean) of all the cells in a range that meet a given criteria.
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