Average Purchase Price Calculator

When buying or selling stocks in multiple tranches, finding the average purchase price is very important. The average purchase price calculator (averaging down calculator) finds your average entry price when buying additional shares of a stock or cryptocurrency.

Average Purchase Price

The average purchase price is the overall average price of a stock or asset bought in multiple transactions. In short, it is the process of finding the average price when an asset is purchased in several installments. Here is how to calculate it:

The average purchase price is $0.

About This Calculator

Your average purchase price (cost basis) is the blended price you effectively paid per share after buying the same stock or cryptocurrency in several tranches. It is the number you need to judge a position's profit and to plan averaging down or taking profit.

Enter the quantity and price of each purchase to get the weighted average price, the total invested amount and the break-even price.

Average purchase price is total cost divided by total shares, so buying more at a lower price pulls the average down in proportion to the money added, not to the number of trades. Buying 10 shares at 100 and 30 shares at 60 gives an average of 70, not the 80 that averaging the two prices would suggest.

Key Formula:Average price = Σ(quantity × price) / Σ(quantity)

Frequently Asked Questions

How is my average price different from my break-even price?

Average price is the cost basis per share. Break-even also adds any commission or fees, so it is usually a few cents higher. This calculator computes the pure weighted-average cost basis.

Does averaging down always lower my risk?

It lowers your average cost only if the new purchase is below the current average. It increases the size of your position, so it raises exposure as well as reducing the average price — size the position deliberately.

Does buying more at a lower price guarantee a profit?

No. Averaging down lowers the break-even price but increases exposure to a falling stock. If the price keeps dropping, the enlarged position loses more money than the original one would have.

Do fees and taxes change the average price?

Add the brokerage commission to the total cost and exclude the transaction tax, which is charged on the sale. A 0.015 % commission looks negligible, but it accumulates quickly on frequent trades.

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Sources & last update

2026-10-19