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Average down calculator
The average price of shares you bought at different times, with fees counted, and how many more to buy to bring that average to the figure you want. Works for averaging up too.
We do not give financial advice, and we make no promises about returns. This calculator only does the arithmetic on the figures you enter. Read the full notice.
Your purchases
Now
Reach a target average
What if I buy more?
Nothing you type is stored or sent anywhere.
How it works
- Average price = everything you spent, including fees ÷ shares held
- Average before fees = (shares × price, added up for each purchase) ÷ shares held
- Shares to buy for a target = (amount spent + fee − shares held × target) ÷ (target − buy price), rounded up
- Profit or loss now = shares held × current price − amount spent
Questions
What does averaging down mean?
Buying more of something you already hold after its price has fallen, so the average price you paid per share goes down. Averaging up is the same thing when the price has risen. The calculator works out the new average either way.
How do I work out how many shares to buy to reach a target average?
Enter the average you want and the price you would buy at. The calculator solves (what you have spent + the new purchase) ÷ (shares you hold + new shares) = target, rounds up to whole shares so you reach the target, and shows what the purchase costs. The target has to sit between your current average and the price you buy at.
Should fees be included in the average?
For your break-even price, yes: the average including fees is the price at which selling everything returns what you paid, before any selling costs. The calculator shows both, so you can compare with what your platform displays.
Does averaging down reduce my risk?
No. It lowers the price you need to get back to, but it also puts more money into the same holding. The calculator shows the arithmetic, not whether it is a good idea.
Can I record sales as well?
Not in this version. Selling part of a holding does not change the average cost of the shares you keep, under the usual method. So after a sale, replace your rows with a single row: the number of shares you still hold, at the average shown before the sale, with the fee left blank. The average, the value and the shares to buy for a target are then all correct. Simply deleting the rows for the shares you sold would give the wrong average. For a whole trade, from buying to selling, use the stock profit calculator.
Is anything I enter stored or sent anywhere?
No. The calculator runs in your browser. Nothing you type is stored or sent anywhere.
What this is, and what it is not
This calculator carries out the arithmetic on the figures you enter. It does not choose trades, give signals or recommend any investment, and its output is not advice. BrightDragon Systems Ltd is not authorised or regulated by the Financial Conduct Authority and does not provide regulated financial services.
Trading carries risk and you can lose money. Leveraged products such as CFDs and spread bets can lose you more than you expect, quickly. Check every figure against your own platform before you trade.
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