Stock Averaging Calculator

Stock Averaging Calculator

The Stock Averaging Calculator helps you find your new average share price after buying more shares of the same stock. If you already own a stock and buy again at a different price, this calculator shows your updated break-even price, total shares, and total invested amount.

Many investors use a Stock Averaging Calculator when the market falls and they want to understand how a second purchase changes their average cost. Instead of doing the weighted average manually, enter your first purchase price, first quantity, second purchase price, and second quantity to get the result instantly.

How to use the Stock Averaging Calculator

1. Enter the initial purchase price and quantity.
2. Enter the second purchase price and quantity.
3. Add brokerage or fees if you want them included in the average cost.
4. Click calculate to see the new average price per share and total invested amount.

Stock averaging formula

The Stock Averaging Calculator uses a weighted average formula:

New average price = Total invested amount / Total number of shares

This means larger purchases have a bigger impact on your average price. Buying a small quantity at a lower price may reduce the average slightly, while buying a larger quantity can change the average more significantly.

Important note

A lower average price does not guarantee profit. The Stock Averaging Calculator only helps with cost calculation. Always review the company fundamentals, risk, and your investment plan before buying more shares.