How to find average price of stock with multiple purchases?

To find the average price with multiple purchases, use this formula: Total Amount Invested / Total Shares Owned. Add up the cost of each purchase (price x shares) to get total invested, then divide by your total share count. Our calculator does this automatically - just enter each purchase and get your weighted average instantly.

Stock Average Calculator

Calculate your average cost per share across multiple stock purchases

Enter Your Stock Purchases

Your Stock Summary

Average Cost Per Share

$0.00

Total Shares

Total Investment

$0.00

Number of Purchases

Break-Even Analysis

Current Stock Price ($)

Unrealized P/L

Want AI-powered predictions for your stocks? Try SharePreds

How to Calculate Average Stock Price

The average stock price is calculated using a weighted average formula. Unlike a simple average, this method accounts for the number of shares purchased at each price point.

The Formula:


                        Average Price = (Price₁ × Shares₁ + Price₂ × Shares₂ + ...) ÷ Total Shares

Example Calculation

Let's say you made two purchases of XYZ stock:

First purchase: 100 shares at $50.00 = $5,000
Second purchase: 150 shares at $40.00 = $6,000

Total Investment: $5,000 + $6,000 = $11,000
Total Shares: 100 + 150 = 250
Average Price: $11,000 ÷ 250 = $44.00 per share

What is Averaging Down?

Averaging down is an investment strategy where you purchase additional shares of a stock after its price has declined. This lowers your average cost per share and reduces the price at which you break even.

Potential Benefits

Lower break-even point
Greater profit if stock recovers
Dollar cost averaging effect

Risks to Consider

Stock may continue falling
Increases exposure to one position
May be throwing good money after bad

Dollar Cost Averaging vs. Averaging Down

While both strategies involve buying at different prices, they have key differences:

Feature	Dollar Cost Averaging (DCA)	Averaging Down
Timing	Regular intervals (weekly, monthly)	After price drops
Approach	Planned, systematic	Reactive to market
Goal	Reduce timing risk	Lower cost basis
Risk Level	Lower (diversified over time)	Higher (concentrated position)

When Should You Average Down on a Stock?

Before averaging down, ask yourself these critical questions:

Why did the stock fall? Is it a temporary setback or a fundamental problem?
Has the investment thesis changed? Are the reasons you bought still valid?
Can you afford to lose more? Never invest money you can't afford to lose.
Are you being emotional? Don't average down just to feel better about losses.
What's your exit strategy? Know when you'll cut losses if the stock keeps falling.

Frequently Asked Questions

A stock average calculator computes your average cost per share when you've purchased a stock at different prices. It uses the weighted average formula: (Price₁ × Quantity₁ + Price₂ × Quantity₂ + ...) ÷ Total Shares. This helps investors understand their true cost basis.

To calculate your average stock price: 1) Multiply each purchase price by the number of shares bought, 2) Add all these values together to get total cost, 3) Divide by total shares owned. For example: If you bought 10 shares at $50 and 20 shares at $40, your average is ($500 + $800) ÷ 30 = $43.33 per share.

Averaging down is a strategy where you buy more shares of a stock after its price has fallen, lowering your average cost per share. For example, if you bought shares at $100 and the price drops to $80, buying more at $80 reduces your break-even point. However, this strategy carries risk—the stock could continue falling.

Averaging down can be beneficial if you believe in the stock's long-term value and it's temporarily undervalued. However, it's risky if the stock is declining due to fundamental problems. Never average down just to lower your average—always reassess why the stock fell and whether your original investment thesis still holds.

Dollar Cost Averaging (DCA) is a systematic strategy of investing fixed amounts at regular intervals regardless of price—reducing timing risk over time. Averaging down is specifically buying more of a losing position to lower your cost basis. DCA is generally considered safer as it's planned and consistent, while averaging down is reactive to price drops.

To find the average price with multiple purchases, use this formula: Total Amount Invested ÷ Total Shares Owned. Add up the cost of each purchase (price × shares) to get total invested, then divide by your total share count. Our calculator does this automatically—just enter each purchase and get your weighted average instantly.

Disclaimer: This calculator is for educational and informational purposes only. It does not constitute financial advice. Always consult a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.