Stock Average Price Calculator
Work out your new average cost after buying more shares of the same stock.
Calculate your average price
Your new average price
Average price if you buy more shares
Same purchases as above, then buying extra shares at your second purchase price. The table shows how each extra buy moves your average price.
How averaging down works
This free stock average price calculator is for investors who buy the same stock more than once. It is free, needs no sign-up, and runs entirely in your browser. Enter each purchase separately and it works out your new average cost per share.
How do you calculate a new average stock price?
Add up the money spent on every purchase, then divide that total by the total number of shares you own. For example, 100 shares at 50 dollars cost 5,000 dollars, and 100 more at 40 dollars cost 4,000 dollars. The total is 9,000 dollars for 200 shares, so the average price is 45 dollars.
What does averaging down mean?
Averaging down means buying more shares of a stock you already own after its price has fallen, which lowers your average cost per share. A lower average means the stock does not need to rise as far for you to break even. It also means you put more money into a falling stock, so the risk is higher.
What is the break-even price after averaging down?
The break-even price is the same as your new average price, before fees and tax. If the share price rises back to your average, your position is worth what you paid for it. This calculator also shows the price needed for a 10 percent gain, which is your average price multiplied by 1.1.
Worked example: 100 shares at 50 dollars, then 100 at 40 dollars
The first purchase costs 5,000 dollars and the second costs 4,000 dollars, so the total invested is 9,000 dollars. You now own 200 shares, so the average price is 45 dollars per share. The stock only needs to reach 45 dollars for you to break even, instead of the original 50 dollars.
How big is the largest stock exchange?
The New York Stock Exchange, founded in 1792, is the largest stock exchange in the world by market capitalisation, according to World Federation of Exchanges data for 2024. Its listed companies include many of the largest businesses in the United States, and its daily trading value runs into tens of billions of dollars.
When is averaging down a bad idea?
Averaging down is risky when the company itself is in trouble, because a falling price may reflect falling sales, rising debt or a broken business model. Buying more then adds to a losing position instead of fixing it. Check the company results and the reason for the fall before you buy more shares.
Frequently asked questions
What is a stock average price?
It is the total amount you spent on a stock divided by the total number of shares you own. If you bought at different prices, the average sits between them, weighted by how many shares you bought at each price.
Is the break-even price the same as the average price?
Yes, before fees and tax. If the share price returns to your average cost, the value of your holding equals what you paid. Broker fees and tax can push the true break-even price slightly higher.
Can I add a third purchase?
Yes. Enter the shares and price for the third purchase in the optional fields, and the calculator includes them in the total shares, total invested and new average price. Leave them at zero if you only made two purchases.
Does averaging down guarantee a profit?
No. It only lowers the price you need to break even. If the share price keeps falling, you can lose more money than if you had not bought extra shares, so it is not a safe strategy on its own.
What price do I need for a 10 percent gain?
Multiply your average price by 1.1. The calculator shows this figure as the price for a 10 percent gain, so you can set a realistic target instead of guessing from your first purchase price.
Does this calculator include broker fees?
No. It works from share counts and prices only. If your broker charges a fee per trade, add those fees to your total invested amount to get a more accurate average cost per share.
Is this financial advice?
No. This is an educational tool that shows the maths of averaging down. Share prices can fall as well as rise, so consider independent financial advice before investing, and never invest money you cannot afford to lose.
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