Share Predictions
Stock average calculator
Your average cost per share across every purchase of a stock.
Average cost per share
$44.00
- Total shares
- Total invested
- $11,000.00
- Profit or loss
- +$250.00
- Return
- +2.27%
How the average cost works
The average cost is a weighted average: a purchase of many shares counts for more than a purchase of few. It is also your break-even price, before fees.
Average cost = (Price 1 × Shares 1 + Price 2 × Shares 2 + ...) / Total shares
An example
You buy 100 shares at $50 ($5,000) and 150 shares at $40 ($6,000). That is $11,000 for 250 shares: $11,000 / 250 = $44.00 a share. At a current price of $45 the position is worth $11,250, an unrealized profit of $250 (+2.27%).
Questions
How do I calculate my average stock price?
Multiply each purchase price by its shares, add the results, and divide by your total shares. For 10 shares at $50 and 20 shares at $40: ($500 + $800) / 30 = $43.33 a share.
What does averaging down mean?
Averaging down is buying more shares of a stock after its price has fallen, which lowers your average cost and your break-even price. If you hold shares bought at $100 and buy the same number at $80, your average falls to $90.
Is averaging down a good strategy?
It depends on why the stock fell. It can pay off if the fall is temporary, and it adds to your loss if the stock keeps falling, because you now hold more of it. Reassess why you own the stock before you buy more.
What is the difference between averaging down and dollar cost averaging?
Dollar cost averaging invests a fixed amount at regular intervals, whatever the price. Averaging down means buying more of a position that has lost value, in reaction to the fall.
Related tools
For education only, not financial advice. Results depend on the numbers you enter.