Stock Average Calculator
Calculate your average stock purchase price across multiple transactions
Stock Purchases
Purchase 1
Purchase 2
Current Market Price
Average Purchase Price
Total Shares
Total Investment
Investment Breakdown
Share Results
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Understanding Stock Averaging
Stock averaging helps you calculate your weighted average purchase price when you buy shares at different price points.
How It Works
- • Calculates weighted average price across all purchases
- • Considers both share price and quantity bought
- • Shows total investment and share count
- • Displays current profit/loss if market price provided
Benefits
- • Accurate Cost Basis: Know your true average price
- • Investment Tracking: Monitor total investment amount
- • Profit Analysis: Calculate returns based on current price
- • Portfolio Management: Make informed buy/sell decisions
Formula
Average Price = (Σ(Shares × Price)) / Total SharesFrequently Asked Questions
How is stock average different from simple average?
Stock average uses weighted average calculation, considering both price and quantity. If you buy 100 shares at ₹50 and 200 shares at ₹100, your average isn't ₹75, but ₹83.33 because you bought more shares at the higher price.
When should I use stock averaging?
Use stock averaging when you've purchased the same stock multiple times at different prices. It helps you understand your true cost basis and make informed decisions about when to sell or buy more.
How does averaging down work?
Averaging down means buying more shares when the price drops, which lowers your average cost. However, this strategy requires careful analysis as it increases your exposure to the stock.