Calculate how new purchases affect your overall position cost.
Buying more shares at a lower price reduces your overall cost basis.
Every time you buy more shares, your average cost per share changes based on the weighted average of all your purchases. The impact depends on both the new purchase price and quantity relative to your existing position.
Adding to a winning position as the price rises. This increases your average cost but can maximize gains if the trend continues.
Adding shares when price drops below your current average. This lowers your break-even point but increases position size and risk.
Multiply your current average price by current shares held
Multiply new purchase price by new quantity
Total cost divided by total shares = new average
Our calculator automatically recalculates your average every time you add a new purchase entry. Add as many transactions as you need!
Calculate Your Average NowNo. The impact is proportional to the quantity. Buying 100 shares at a different price will shift your average much more than buying just 1 share. This is why it's called a 'weighted' average—larger quantities have more weight.
It depends on your conviction and position sizing rules. Many traders 'scale in' to winning positions to maximize gains, but this also increases your average cost and requires a higher exit price for the same profit margin. Always consider your total portfolio allocation and risk tolerance.
Use our high-precision stock average calculator to get instant results including commissions and averaging down targets.
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