Stock Average Down Calculator
Free stock average down calculator. Calculate your new average stock price after buying more shares at a lower price. Easy-to-use tool for investors and traders.
Calculate
Results
How to Use
Enter Your First Purchase
Input the stock price and number of shares from your initial purchase.
Add Additional Purchases
Click 'Add Purchase' to enter subsequent buy orders with their prices and quantities.
Calculate Your Average
Click the Calculate button to see your new average price, total shares, and total investment.
Analyze Your Results
Review your new cost basis and make informed decisions about your portfolio.
What is Averaging Down?
Averaging down is an investment strategy where an investor purchases additional shares of a stock after its price has declined. By buying more shares at a lower price, the investor's average cost per share decreases.
Average Price = (P₁ × Q₁ + P₂ × Q₂ + ... + Pₙ × Qₙ) ÷ (Q₁ + Q₂ + ... + Qₙ)
Where P represents the purchase price and Q represents the quantity of shares purchased in each transaction.
This strategy is popular among investors who believe in a company's fundamental strength and view price dips as buying opportunities. However, it's important to note that averaging down can also increase losses if the stock continues to decline.