Stock Average Calculator

What is Stock Averaging?

Stock Averaging is a strategy where you buy more shares of a stock you already own at different prices. This changes your "average cost price" per share.

It is most commonly used to "Average Down" (buying more when the price falls) to lower your breakeven point, but can also be used to "Average Up" (buying more as the price rises) to increase your position in a winning stock.

The Formula

• Total Invested Value = (Qty 1 × Price 1) + (Qty 2 × Price 2) + ...
• Total Shares = Qty 1 + Qty 2 + ...

Averaging Down vs. Averaging Up

Averaging Down (The Risk)

Buying more shares as the price falls.
Goal: Lower average cost to recover losses faster.
Risk: Dangerous if the stock keeps falling (catching a falling knife). Only do this for high-conviction, fundamentally strong stocks.

Averaging Up (The Trend)

Buying more shares as the price rises.
Goal: Increasing position size in a winning trade.
Benefit: You are backing strength. This is often safer than averaging down.

FAQs

Q. Does this include brokerage charges?

No. This calculator finds the average *market price* of your shares. To include brokerage, add the charges to your "Buy Price" manually (e.g., enter 100.50 instead of 100).

Q. What if I sell some shares?

Selling shares does not change your average buy price for the remaining shares. It only realizes profit or loss on the sold portion.