Stock Average Calculator
About the Stock Average Calculator
When you buy more of a stock you already hold — often at a different price — your average buy price changes. This calculator works out the new average cost per share after you add to a position, sometimes called "averaging".
Enter the quantity and price of each purchase, and it returns your blended average price and total investment.
Frequently asked questions
How is the average stock price calculated?
Average price = (quantity₁ × price₁ + quantity₂ × price₂) ÷ (quantity₁ + quantity₂). It is the total amount invested divided by the total shares held, weighting each buy by its quantity.
What does "averaging down" mean?
Buying more of a stock after its price has fallen, which lowers your average cost per share. It reduces the price at which you break even — but it also increases your exposure to a stock that has already declined.
Is averaging down a good strategy?
It depends entirely on why the price fell. Adding to a fundamentally sound holding at a lower price can help; averaging down on a deteriorating company just deepens the loss. It is a judgement about the stock, not just the maths.
What is averaging up?
Buying more as the price rises, which raises your average cost. Investors do it to add to winners, accepting a higher average in exchange for a larger position in a stock that is performing.
Does the average price include brokerage and charges?
This calculator uses purchase prices only. For your true break-even, add brokerage, STT and other charges to the cost — our Brokerage calculator estimates those for a trade.