Stock Average Calculator

How it's calculated

Average price = total amount invested ÷ total units held. For example, 50 units at ₹1,200 and 30 units at ₹980 give (60,000 + 29,400) ÷ 80 = ₹1,117.50.

What is a stock average price?

Your average buy price is the total money you have put into a stock divided by the number of shares you hold. If you bought the same stock at different prices on different days, the average tells you the single price at which you break even, before charges and tax.

Buying more shares after a fall lowers your average. This is often called averaging down. For example, 100 shares bought at ₹500 and another 100 bought at ₹400 give an average of ₹450, so the stock only has to recover to ₹450 for you to break even. Averaging down adds more money to the same company, so it raises your risk if the business itself has weakened.

Frequently asked questions

How do I calculate the average price of a stock?

Multiply the units and price of each purchase, add those amounts, and divide by the total units. This calculator does it as you type, and you can add as many purchases as you need.

Does the average price include brokerage and charges?

Not unless you include them in the price you enter. For a break-even price that counts charges, use the Brokerage & Charges Calculator.

Is averaging down a good idea?

It depends on why the price fell. If the business is still sound, buying more at a lower price can reduce your average. If the business has deteriorated, it only increases the money you have at risk.

How to use the Stock Average Calculator

Enter the units and price of each purchase. The calculator updates as you type and shows your average buy price, along with the figures behind it. It runs in your browser, so nothing you enter is sent anywhere. Use the Reset button to go back to the example values.