Average down calculator

Enter your current shares, their average cost, the market price and the average you want. It works for averaging down or up.

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How to use it

  1. Enter shares you hold, current average price, current market price and target average price.
  2. The result appears straight away and updates as you edit.
  3. Copy the result, or copy a link that keeps the same values to share it.

How it is calculated

Shares needed = current shares × (current average - target average) ÷ (target average - market price). The target must lie between the market price and the current average.

Example

Inputs: Shares you hold = 100 shares, Current average price = 50, Current market price = 30, Target average price = 40. Result: Shares to buy: 100 shares; Rounded up to whole shares: 100 shares; Cost of the whole shares: 3,000.00.

Limits and caveats

  • Commissions are not included.
  • Averaging down does not reduce a loss by itself; it increases how much you have in the same stock.

Questions about this tool

Why can I not target an average below the market price?

Buying at the market price can never pull the average below that price, however much you buy. It only gets closer to it.

Why is the new average slightly off the target?

Shares are usually bought whole, so the count is rounded up, which moves the new average a little closer to the market price.

Does it work for averaging up?

Yes. If the market price is above your average, enter a target between the two to see how many shares to buy.