Average Cost: 100 Shares at $150 + 50 Shares at $120
Buying 100 shares at $150 and 50 more at $120 gives an average cost of $140 per share.
How to use this tool
- Enter the shares and price of your first purchase.
- Enter the shares and price of your second purchase (use 0 shares if none).
- Read your blended average cost per share.
- Check the total shares and total invested for the combined position.
- Compare the average cost with the current price to gauge your gain or loss.
Calculate your new average cost per share after buying additional shares at a lower price.
Frequently asked questions
- How do I calculate average cost per share?
- Multiply each purchase's shares by its price, add those amounts to get total invested, then divide by the total number of shares. The result is your average (break-even) cost.
- Is the average just the midpoint of the two prices?
- Only if you bought the same number of shares in each lot. Otherwise the average is weighted toward the lot with more shares.
- What is averaging down?
- Averaging down means buying more shares after the price falls, which lowers your average cost. It increases your position size and risk, so it is not always wise.
- Does this include commissions?
- No. For exact cost basis, add any commissions or fees to the total invested before dividing by shares.