The Average function will ignore the truly blank cells automatically. However, if you have disabled the option of Show a zero in cells that have zero value in Excel Options dialog box (clicking File > Options > Advanced > Display options for this worksheet), some blank cells may have zero values in Excel. In this case, the Average function will not exclude these blank cells with zero values.

Actually we can exclude the cells with zeros to solve this problem. For example, you want to average the Range A1:D13 with ignoring/excluding blank cells and zeros, you can apply the formula =AVERAGEIF(A1:D13,"<>0") as below screenshot shown:

Microsoft Excel can automatically average selected cells and show calculated results in the Status bar. If we can select only nonblank cells in a range, we can get the average of this range excluding blank cells. Kutools for Excel's Select Nonblank Cells utility can help you get it done at once.

Select the range where you want to average excluding blank cells, and click the Kutools > Select > Select Un blank Cells.

Now only cells with values are selected in the specified range, and you will get the average excluding blank cells in the Status bar as below screenshot shown:

Weighted average

Calculate average/compound annual growth rate

Moving/rolling average

Running total /average

Average rate of change