StockAvg

Stock Average Down Calculator

Enter the position you hold now, then the buy you are planning. You get your new average price per share, how far your average moves, and your new totals — with the sum shown using your own numbers.

Your position now

Shares Price per share

The buy you are planning

Shares to buy Price per share

How your new average is worked out

Averaging down means adding to a position you already hold at a price below the average you paid. The new average is still a weighted average — the same arithmetic used everywhere on this site — with the buy you are planning counted in as one more purchase.

New average = (shares you hold × average you paid + shares you are buying × price of the buy) ÷ (shares you hold + shares you are buying)

The first bracket is the money in; the bottom line is everything you would own afterwards. Type your figures in above and the page prints that same sum with your own numbers under the result.

Worked example: you hold 100 shares at $50 and 50 shares at $60, so your average is 53.3333 across 150 shares. The stock is down to $45 and you buy 200 more at that price. Your new cost is 8,000 + 200×45 = 17,000 across 150 + 200 = 350 shares, giving a new average of 48.5714 — a fall of 4.7619, or 8.92%.

Rounding: every figure on this page is rounded down, never up — the same rule as the rest of the site. Prices are shown to four decimals and amounts to two. The change is worked out from the two averages exactly as they are shown on screen, so the numbers you read add up.

If the price you plan to pay is above your current average, the average goes up instead of down. The page says so rather than assuming otherwise.

What is counted, and what is not

This is an average down calculator for one position at a time. It uses only the share counts and prices per share you type in.

The result is what your average price per share would become, not what you should buy. It is arithmetic, not advice. If you want a commission folded in, add it to the price per share of that buy before typing it in. Amounts are shown in whatever currency you typed; no exchange rate is applied anywhere.

A lower average is not a smaller risk

Averaging down moves your average closer to the current price. It also makes the position bigger. If the price keeps falling, you are now holding more of it — a lower average, and a larger amount exposed to the fall.

That is why the drop and the new totals are shown side by side here: the fall in your average and the rise in your cost and share count are one decision, not two, and both are on the screen at once.

Nothing on this page tells you to average down, or that you should buy any amount. It works the arithmetic out if you decide to.

Frequently asked questions

Is a share average down calculator the same thing?

Yes. Stock average down calculator and share average down calculator are two ways of writing the same request — the same inputs and the same weighted average, giving one answer. They are one page here, not two.

How is this different from the stock average calculator in this site's menu?

That one tells you the average of the buys you have already made. This page adds a purchase that has not happened yet, so you can see what your average would become before you decide. If you only want the average of your past buys, use the calculator on the home page.

How many shares do I need to buy to reach a target average?

This page does not work that way round — it does not take a target and return a share count. What it does is let you try a figure: enter the shares and price you are considering, read the new average, then adjust the share count until the average sits where you want it. Two or three tries usually gets you there.

What if the buy I plan is above my average?

Then the average rises. The label on the result changes from Average lowered by to Average raised by, and the figure tells you by how much. The page does not assume you are averaging down.

Can I enter more than one purchase I already hold?

Yes. Add a row for every buy that makes up the position, using + Add purchase, and remove a row with the × on it. That way the average you start from is the real one, rather than a single blended figure you typed in.

Why does my broker show a different number?

This page counts only what you type. Brokers often fold commissions into their figure, and they may treat sales, dividends or corporate actions their own way. If your broker includes something this page leaves out, the two numbers will differ — that is a difference in what is counted, not an error in the arithmetic here.

Does it work on my phone, and do I need an account?

Yes to the first, and no to the second. The fields stack to a single column on a narrow screen and the results stay inside the width of the page. There is no sign-up, no pop-up and nothing to install: the whole calculation runs in your browser, and your numbers are not sent anywhere.

This page is a calculator, not investment advice. Averaging down lowers your average price; it does not make a position safer. Contact: [email protected]