Trading Calculators
Averaging-down (Average Price) Calculator
Calculate your new average price after buying more, and how many shares you need to reach a target average price.
Enter your values and press Calculate
New average price
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Total shares held
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Total purchase amount
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Current return
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How to use
Before averaging down, check the numbers first
Lowering your average price reduces the gain needed to break even, but your weight in the same stock, and your risk, grows too.
Enter current holdings
Enter your current average price, shares held and current price.
Plan additional buys
Enter the buy price and quantity for each round, or enter a target average price and work backwards to the quantity needed.
Check the risk
Along with the new average price, check the amount invested and how the gain needed to break even changes.
Formulas
New average price = (existing average × existing quantity + Σ additional buy price × additional quantity) / total quantity Shares needed for target average = existing quantity × (existing average − target average) / (target average − current price)The target average price must be above the current price to be achievable. The closer the target is to the current price, the more sharply the required quantity grows. Fees and taxes are not included.
FAQ
What is the difference between averaging down and adding to winners?
Averaging down means buying more when the price is below your average price in order to lower it; adding to winners (pyramiding) means buying more as the price rises. This calculator can compute the new average price in both cases.
The quantity needed to reach my target average price is far too large.
When the target average price is close to the current price, the required quantity grows exponentially. Set a realistic target, or plan to split your purchases into several rounds within the amount you can invest.
Is averaging down a good strategy?
If the company's fundamentals remain intact and you stay within your planned position size, it can be a way to manage your average price. But averaging down without checking why the stock fell can deepen your losses. Also check an appropriate position size with the Position Sizing Calculator.
Results are estimates based on your inputs and simplified assumptions, and are for reference only, not a basis for investment decisions.
Tools that work well together
Break-even Calculator
A -50% loss needs a +100% gain. See at a glance the gain required to break even for each loss rate.
Position Sizing Calculator
Calculate the right number of shares for this trade from your acceptable loss relative to your account and your stop-loss price.
Margin Call Price Calculator
If you bought on margin, see in advance how far the price can fall before you hit a collateral shortfall and forced liquidation.