Solve for the weighted average price of a stock when averaging down. Calculate your average buying cost across up to 5 purchase levels.
Weighted Average Price
Total Invested
₹1,26,500
Total Shares
120
Current Value
₹1,32,000
Total Profit/Loss
₹5,500
Difference in value
Percentage ROI
+4.35%
Yield on total cost
Buy Price Levels vs. Average Buying Cost
A stock average price calculator is a vital utility for active traders and investors who purchase shares of a stock at multiple different prices. Whether you are "averaging down" during a market correction or scaling into a position as prices rise ("averaging up"), this tool calculates your precise weighted average purchase price.
Understanding your average acquisition cost helps you determine your exact break-even point and evaluate current trade profitability relative to current market price.
Our multi-tier average down calculator allows you to enter up to 5 distinct buy levels:
A simple average (adding prices and dividing by count) is incorrect because it ignores the quantity of shares bought at each price. Instead, we use a weighted average cost formula:
Weighted Average Price = Sum(Price_i * Shares_i) / Sum(Shares_i)
For example, if you buy:
The calculations are:
Estimated profit/loss is calculated against Current Market Price (C):
Net Profit = (C - Weighted Average Price) * Total Shares
Averaging down is the practice of buying more shares of a stock as its price declines. This lowers your weighted average acquisition cost, meaning the stock needs to recover to a lower price point for you to break even or turn a profit.
Averaging down can be highly profitable for strong, high-conviction companies with robust fundamentals that are experiencing temporary stock setbacks. However, averaging down on low-quality companies or weak business models can lead to compounding losses, often referred to as "catching a falling knife."