Aggregate functions in SQL like COUNT, SUM, AVG, MIN, and MAX process multiple rows to produce a single summary result. COUNT(*) counts all rows regardless of NULLs. SUM adds up all non-NULL values in a column. AVG calculates the average by dividing the sum by the count of non-NULL values. MIN and MAX scan all rows to find the smallest and largest values respectively. Each function scans the entire table and returns one value summarizing the data. This visual trace showed step-by-step how these functions work on a sales table with 5 rows, tracking intermediate and final results.