Share Average Calculator
Calculate the average price of your stock market shares when you buy the same stock at different prices.
What is Stock Average?
Stock averaging is an investment strategy where you buy more shares of a stock you already own, but at a different price. When you purchase stocks in multiple batches over time, the average price of your entire holding changes. This calculator helps you determine exactly what your new average cost per share will be.
How does the Share Average Calculator work?
This tool uses a simple weighted average formula to compute your new share price. It takes the total amount of money you've invested across all purchases and divides it by the total number of shares you own.
Average Price = Total Amount Invested ÷ Total Number of Shares
Why is averaging important?
Averaging is commonly used in strategies like "Buy the Dip" (averaging down). If a stock's price drops and you believe it will recover, buying more at the lower price brings your average cost down. This means the stock doesn't need to reach your original purchase price for you to break even or make a profit.