Key Takeaway
Stock averaging down means buying more shares at a lower price to reduce your overall cost per share. While it lowers your breakeven price, it also increases your exposure to a potentially declining stock.
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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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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