Average Cost / Share
-
Total Shares
Total Invested
-
When Should You Use This?
Use this calculator when you've bought the same stock at different prices (averaging down or up) and want to know your true breakeven price. Essential for managing positions where you add to winners or buy dips.
How It Works
1
Enter Each Purchase
Input the price and number of shares for each buy. You can enter up to 3 separate purchases.
2
See Your Average
The calculator shows your weighted average cost per share, taking into account the different quantities at each price.
3
Know Your Breakeven
Your average cost is your breakeven price. The stock needs to trade above this for your position to be profitable.
Frequently Asked Questions
Averaging down means buying more shares of a stock after its price has dropped. This lowers your average cost per share, so you need a smaller recovery to break even.
It depends. Averaging down on fundamentally strong stocks during temporary dips can be smart. Averaging down on a stock in a long-term downtrend can magnify losses. Always have a thesis for why the stock will recover.
Dollar-cost averaging (DCA) is buying at regular intervals regardless of price. Averaging down is specifically buying more after a price drop. DCA is systematic; averaging down is discretionary.
For accuracy, add any commission costs to the total purchase price. Most modern brokers offer commission-free trading, so this is less relevant today.
Yes. If you buy more shares at a higher price, your average cost rises. Averaging up on winners is a valid momentum strategy, though it raises your breakeven.