Stock Average Calculator

What does this calculator do?

You can use our stock average calculator to work out your average share price if you’ve bought the same stock multiple times over time at different prices. It'll return your weighted average cost per share (also known as the average cost basis method) along with the total number of shares you own and the total amount you've invested in the stock.

Of course, you can do these calculations in a spreadsheet if you like. But this calculator just makes things a little easier, especially for multiple purchases.

If you wish, you can also enter a target or current sell price, and the calculator will return your unrealized gain or loss. This can help you understand your current position if you're wondering whether to sell.

Why is average share price important?

If you’ve purchased the same stock more than once, you'll likely have bought them at different price points. When calculating your average share price, you can determine your real cost basis – how much you've paid, on average, for each of the shares you own.

This can be especially useful if:

• You’re investing regularly (e.g. dollar-cost averaging)
• You want to track your break-even point
• You’re planning a sale and want to see if you’re in profit
• You need to report your cost basis for capital gains tax purposes

Knowing your stock average can also be useful if you’re following a strategy called averaging down.

What is averaging down?

Averaging down is when an investor buys additional shares after a stock's price drops, with the aim of reducing the average cost per share. If the stock later rebounds, they reach their break-even point sooner.

Of course, there's a risk that the stock doesn't rebound, which could lead to further losses. So it’s worth pausing to ask whether the investment still makes sense before doubling down. Sometimes, the rebound doesn’t come.

Ultimately, having a clear view of your stock average can help you make better-informed decisions about whether to buy more shares, hold your position or sell your investment.

How to use our calculator

Let's go through an example. Say you bought:

• 100 shares at $10 = $1,000
• 50 shares at $5 = $250

You now own 150 shares and you’ve invested $1,250.

Your average price per share is: $1,250 ÷ 150 = $8.33.

This figure represents your break-even price. So, if the current share price is above that, you're in profit. If it's below that figure, you're holding a paper loss.

Adding a sell price (optional)

If you choose to enter a sell price, our calculator will also show you:

• The market value of your shares at that price
• Your potential profit or loss
• Your return as a percentage

This can help you with exit planning, reviewing your portfolio, or estimating any gains for tax time. If you want more information on how this affects tax filing, the IRS provides guidance in Publication 550.

A few things to keep in mind

We've designed this tool for simplicity. So it does not account for:

• Brokerage fees or trading commissions
• Taxes
• Dividends
• Stock splits or corporate actions

If your investing setup is more complex, or if you're trading across multiple different accounts, you may wish to consult an independent financial advisor or use professional portfolio tracking tools. As always, we recommend that you speak to a qualified financial advisor if you're thinking about investment planning.

Related calculators

• Investment Calculator – project how your investment might grow over time
• IRR Calculator – measure the internal rate of return on your stock investment
• Future Value Calculator – estimate the potential future value of your shares
• CAGR Calculator – calculate the compound annual growth rate of your portfolio

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