Stock Average Price Calculator
Stock Average Price Calculator
Calculate your average cost per share after multiple purchases.
Purchase 1
Purchase 2
Average Price Per Share
₹140.00
Total Shares
150
Total Invested
₹21,000
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Stock Average Cost Formula
Calculates the weighted average price per share when buying a stock in multiple transactions.
Worked Example: Bought 50 shares at ₹150, and 100 shares at ₹120
Stock Averaging: Buying the dips to lower your cost basis
Rahul bought 50 shares of a tech stock at ₹150. A month later, the stock fell to ₹120. Rather than selling at a loss, Rahul decided to buy 100 more shares at the discount price.
By investing ₹19,500 total for 150 shares, his average price per share became ₹130. When the stock recovered to ₹140, instead of still being in the red (as his original purchase price was ₹150), he was actually in profit by ₹10 per share.
Stock averaging allows you to lower your cost basis by purchasing more shares when prices dip, enabling faster paths to recovery.
Avoid averaging down on companies with weak fundamentals. If a stock falls due to structural business decline, averaging down only increases your capital exposure.
Frequently Asked Questions
What is stock averaging?
Stock averaging is the process of buying more shares of a stock you already own at different prices to alter your average cost basis.
Should I average down on losing stocks?
Averaging down can lower your break-even price, but it should only be done if the company's fundamentals remain strong. Averaging down on failing companies increases your losses.
Is averaging up a good strategy?
Yes, averaging up (buying more as the stock rises) confirms the trend and can build larger positions in winning stocks, although it raises your average cost.
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