Stock Average Calculator

Calculate your average cost per share when you buy a stock at different prices over time. Add up to five purchases to see your weighted average cost basis, total shares, and total investment.

Purchase Details

Purchase 1
Purchase 2

Results

$48.33 Average Cost Per Share
Total Shares150
Total Invested$7,250.00

EDUCATION

Understanding Average Cost Basis

Your average cost per share is the weighted average price you paid across all of your purchases of the same stock. This number is critical because it determines whether you are sitting on a profit or a loss at any given market price. Brokers often call this your "cost basis."

The formula is: Average Cost Per Share = Total Amount Invested / Total Shares Owned. For example, if you buy 100 shares at $50 and then 50 more shares at $45, your total investment is $7,250 and you own 150 shares. Your average cost per share is $7,250 / 150 = $48.33.

This strategy of buying additional shares at a lower price is commonly known as "averaging down." It reduces your overall cost basis so the stock does not need to recover as much for you to break even. However, averaging down also increases your exposure to the same stock, so it should be used with a clear plan and proper risk management.

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