Find your new average cost after buying more of a stock, what you are up or down at today’s price, and how many shares it would take to reach a target average.
Up or down at the new buy price
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Shares to buy for the target average
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How it works
Your average cost is everything you paid divided by the shares you hold. Buying more below your average pulls it down; buying above it pulls it up.
A lower average means the stock needs a smaller bounce for you to break even, but it also puts more money into a position that has been going against you. Size the extra buy as carefully as a new trade.
Worked example
You own 100 shares at an average of $50 and buy 100 more at $40. You now hold 200 shares that cost $9,000, an average of $45. To bring the average down to $47 instead, you would only need about 43 shares at $40: 100 × (50 − 47) ÷ (47 − 40) = 42.9.
Average Down questions
Is averaging down a good idea?
It depends on why the price fell. If your reason for owning the stock still holds, a lower price can be a better entry. If the story has changed, adding more only makes a losing position bigger.
Does this work for averaging up?
Yes. Enter a buy price above your average and the calculator shows the higher new average. The target average works the same way in reverse.
Why can I not reach my target average?
A target only works between your current average and the new buy price. Below the buy price it is out of reach however many shares you buy.
Should I include commissions?
If you pay them, add them to the cost. A simple way is to raise each price by the commission divided by the number of shares in that buy.
For informational and educational purposes only. Not investment advice, and not a recommendation to buy or sell any security. Results are estimates from the numbers you enter.