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.
What does averaging down do to my position?
It lowers the average cost per share, and therefore the price at which the position breaks even. It also increases the number of shares held in a stock that has already fallen, so any further move — in either direction — is larger in rupees. Why the price fell is a question about the company that this arithmetic does not touch; the calculator blends the prices and quantities you enter and nothing more.
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.
Disclaimer: This calculator is for information and education only. It is not investment advice and not a recommendation or a tip, and it does not predict prices. Trading in shares and derivatives carries a risk of loss: futures and sold options are leveraged, and a loss on them can exceed the margin paid. Brokerage differs by broker, and brokerage, taxes and exchange charges change over time. Every figure is computed solely by applying the formula and assumptions stated on this page to the inputs you entered.