Stock Average Calculator - Calculate Average Share Price Free Stock Average Calculator
Add multiple purchase lots with buy price and quantity to calculate the weighted average share price, total investment and total shares held.
Purchase Lots
Average Results
Average Price 0
Total Shares
Total Investment 0
Number of Lots 0
Purchase Breakdown
| Lot | Buy Price | Quantity | Lot Cost | % of Total |
|---|
Stock Average Calculator - Guide
What is Stock Averaging?
Stock averaging is the practice of buying shares of a stock at different prices over time. The average price is the weighted average of all purchase prices, weighted by the number of shares bought at each price. This helps investors understand their true cost basis.
Average Price Formula
Average Price = Total Amount Invested ÷ Total Shares
Where:
- Total Amount = Sum of (Buy Price × Quantity) for each lot
- Total Shares = Sum of Quantity for each lot
Example:
- Lot 1: 50 shares at 100 = 5,000
- Lot 2: 100 shares at 80 = 8,000
- Total = 13,000 / 150 shares = 86.67 average price
Averaging Down vs Averaging Up
- Averaging Down: Buying more shares when the price drops to lower your average cost. This increases position size but can reduce potential losses if the stock recovers.
- Averaging Up: Buying more shares as the price rises, common in momentum investing. This increases your average cost but can be profitable in strong uptrends.
When to Use This Calculator
- When you have bought the same stock at different prices and want to know your true average cost.
- Before making additional purchases to see how the new lot will affect your average price.
- To track your cost basis for tax purposes or portfolio management.
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