Stock Average Calculator
Calculate your breakeven price when averaging down on stocks
How to Calculate Stock Average Price
Use this tool to determine your average cost per share when purchasing a stock at different prices. This is especially useful for:
- Dollar-cost averaging strategies
- Evaluating dip-buying opportunities
- Managing risk in volatile markets
Stock Average Calculator
Calculate your average stock price across multiple purchases.
Your Purchases
| Purchase # | Price (₹) | Quantity | Amount (₹) | Action |
|---|
Results
About Stock Average Calculator
The Stock Average Calculator helps investors determine their average purchase price when buying shares of a stock at different prices over time. This is particularly useful for:
- Dollar-cost averaging strategies where you invest fixed amounts at regular intervals
- Tracking your true cost basis for tax purposes
- Understanding your break-even point when trading the same stock multiple times
- Evaluating whether averaging down makes sense for your portfolio
How to Use This Calculator
- Select the number of transactions you've made for the stock
- Enter the price per share and quantity for each transaction
- Click "Calculate Average" to see your total investment, total shares, and average price
- The chart will visually represent your purchases and the average price
Example
Suppose you bought ABC stock three times:
- 100 shares at ₹50
- 150 shares at ₹45
- 200 shares at ₹40
Your total investment would be ₹18,500 (₹5,000 + ₹6,750 + ₹8,000) for 450 shares, giving you an average price of ₹41.11 per share.
Stock Averaging FAQs
What is stock averaging?
Stock averaging (or "averaging down") is an investment strategy where you buy additional shares of a stock you already own when the price drops, lowering your average cost per share.
When should I average down on a stock?
Consider averaging down only when:
- The company's fundamentals remain strong
- The price drop is due to market sentiment, not deteriorating business
- You have sufficient capital to maintain diversification
Why is knowing my average stock price important?
Knowing your average stock price helps you understand your true cost basis, which is essential for determining your profit/loss, making informed decisions about when to sell, and for tax reporting purposes.
Should I always average down my stock purchases?
Not necessarily. While averaging down can lower your cost basis, it also increases your exposure to a potentially declining stock. Consider the company's fundamentals before deciding to average down.
How does this differ from dollar-cost averaging?
Dollar-cost averaging is a strategy of investing fixed amounts at regular intervals regardless of price. This calculator helps you determine the results of such a strategy or any series of purchases at different prices.
Does this calculator account for brokerage fees?
No, this calculator only computes the average based on share price and quantity. For precise cost basis calculation, you should include brokerage fees in your purchase prices.
What is averaging down in stocks?
Averaging down means buying more shares at a lower price to reduce your overall cost per share.
Is averaging down a good strategy?
It can lower your breakeven, but avoid "catching falling knives" in weak companies.
How much should I average down?
Never risk more than 5-10% of your capital on one stock.