Stock Average Calculator
Buying the dip? Calculate your new average share price instantly. Essential for Dollar Cost Averaging (DCA) strategies.
Buy Transactions
Average Price Per Share
Your new break-even point
Total Shares
0
Total Invested
$0.00
Unrealized P&L
0.00%
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How to Use the Stock Average Calculator
Enter Initial Trade
Input the quantity (number of shares) and the purchase price of your first stock transaction.
Add More Buys
Click "Add Row" to input subsequent purchases. This is where you enter the "dip" prices to lower your average.
Get Results
The calculator automatically updates your Weighted Average Price. Optionally, enter the CMP to see profit/loss.
Understanding Dollar Cost Averaging (DCA)
Dollar Cost Averaging (DCA) is an investment strategy where an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.
When stock prices fall, many investors choose to "average down." This means purchasing more shares at a lower price than the initial purchase. This lowers the average cost per share, meaning the stock price doesn't need to rise as high for the position to become profitable again.
The Stock Average Formula
The formula used by this calculator is a weighted average calculation:
Manually calculating this can be tedious, especially with multiple buy orders and commission fees. Our tool handles the math instantly.
Frequently Asked Questions
Why is my average price important?
Your average price acts as your "break-even" point. If the current market price is above your average price, you are in profit. If it's below, you are at a loss. Knowing this exact number helps in setting stop-losses and target sell prices.
Does this calculator work for crypto?
Yes! This math applies universally to Stocks, ETFs, Mutual Funds, and Cryptocurrencies like Bitcoin or Ethereum. Any asset where you buy units at varying prices can be averaged.