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Stock Average Calculator (Share Average Price)

This stock average calculator works out the average price of shares you bought at different prices. Enter each purchase, add today's market price, and see your average buy price, your profit or loss, and what buying more would do to the average.

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Calculator and results

150 shares bought for ₹72,000 have an average price of ₹480.00 a share. Buying 50 more at ₹400.00 changes the average to ₹460.00.

Your purchases

Purchase 1

₹

Purchase 2

₹
₹

Today's share price, for profit or loss and for planning the next purchase.

Average buy price

₹480.00

per share

Total shares

150

Total invested

₹72,000

Unrealised loss

₹12,000

16.67% · worth ₹60,000 now

After buying 50 more at ₹400.00

New average
₹460.00
Change
−₹20.00
Extra money needed
₹20,000
Total shares
200

The average uses the buy prices only, as most broker apps show it. Brokerage, STT and other charges raise your real cost slightly; averaging down lowers the average but also puts more money into the same share.

Average price

₹480.00

150 shares
What it is:
A calculator for the average buy price of a share bought in several lots.
What it calculates:
The weighted average price, total shares and amount invested, the profit or loss at today's price, the new average after buying more, and the shares needed to reach a target average.

Key Assumptions

  • Each purchase is entered at the price per share you paid.
  • Brokerage, STT, stamp duty and GST are not added to the cost.
  • Shares already sold are left out; enter only the shares you still hold.

How does the Stock Average Calculator work?

The average price of a share is a weighted average: add up what you paid for every purchase (buy price × quantity) and divide by the total number of shares. A plain average of the prices is wrong whenever you bought different quantities each time.

Worked example: 100 shares at ₹500 and 50 shares at ₹440 cost ₹50,000 + ₹22,000 = ₹72,000 for 150 shares, so the average price is ₹480. If the share now trades at ₹400, the holding is worth ₹60,000, an unrealised loss of ₹12,000 or 16.67%.

Averaging down means buying more below your average to lower it. In the example, buying 50 more at ₹400 brings the average to ₹460 for ₹20,000 more. To reach a target average of ₹450, you need 90 more shares at ₹400, which costs ₹36,000. The target has to lie between your current average and the price you buy at: buying at ₹400 can never take the average below ₹400.

A lower average only helps if the share recovers. Averaging down puts more money into the same company, so check why the price fell before you add to it. The same arithmetic works in reverse for averaging up, when you buy more of a share that has risen.

This calculator uses buy prices only, as broker apps do. To include brokerage, STT, stamp duty and GST on each trade, use the Brokerage Calculator. To see the return on a holding including dividends, use the Stock Return Calculator, and for tax when you sell, the STCG Tax Calculator or LTCG Tax Calculator.

Averaging down: 150 shares at an average of ₹480, buying more at ₹400

Shares bought at ₹400Extra moneyTotal sharesNew average
25₹10,000175₹468.57
50₹20,000200₹460.00
90₹36,000240₹450.00
150₹60,000300₹440.00

Buy prices only; brokerage and other charges are not included. However many shares you buy at ₹400, the average stays above ₹400.

Stock Average Calculator formula

Average price = Σ (buy price × quantity) ÷ Σ quantity; Shares for target = Q × (A − T) ÷ (T − P)

Q
= shares you hold now
A
= your current average price
T
= the target average price
P
= the price you will buy at

The answer for a target is rounded up to whole shares, so the new average lands at or just past the target.

Stock Average Calculator: worked example

100 shares bought at ₹500 and 50 more at ₹440; the share now trades at ₹400

Total shares
150
Total invested
₹72,000
Average buy price
₹480.00
Value at ₹400
₹60,000
Unrealised loss
₹12,000 (16.67%)
New average after 50 more at ₹400
₹460.00

Stock Average Calculator: frequently asked questions

How do I calculate the average price of shares?
Multiply each buy price by the number of shares bought at it, add the results, and divide by the total number of shares. For example, 100 shares at ₹500 and 50 at ₹440 cost ₹72,000 for 150 shares, an average of ₹480.
How many shares should I buy to reduce my average?
Use shares to buy = Q × (A − T) ÷ (T − P), where Q is the shares you hold, A your average, T the target average and P today's price. Holding 150 shares at ₹480, you need 90 shares at ₹400 to bring the average to ₹450.
Is averaging down a good idea?
Only if you still believe in the company. Averaging down lowers your break-even price, but it also puts more money into a share that has fallen. If the business has weakened, a lower average does not help.
Does selling some shares change my average price?
No. Selling part of a holding does not change the average price of the shares you keep in your broker app. For tax in India, shares held in demat are treated as sold in the order they were bought, first in, first out.
Does the stock average include brokerage?
No. Like most broker apps, it uses buy prices only. Brokerage, STT, stamp duty and GST add a little to your real cost per share; the brokerage calculator works these out for each trade.

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Reviewed by Pradipta Ray, MBA (Finance) · Updated