How to use the Stock Average Calculator
- 1. Enter your buysType the quantity and price for each purchase, up to four.
- 2. Add market priceOptional: enter the current price to see your profit or loss.
- 3. Set a targetOptional: enter a target average to see how many more to buy.
How the average price is calculated
Your average is a weighted average, so bigger purchases count for more: average price = total amount invested ÷ total shares.
Example: you buy 100 shares at ₹500 and 50 more at ₹400. You have invested ₹50,000 + ₹20,000 = ₹70,000 across 150 shares, so your average is ₹466.67. A simple average of ₹500 and ₹400 would say ₹450, which is wrong.
If the market price is ₹420, your shares are worth ₹63,000, a loss of ₹7,000 or −10.00% on cost.
To bring the average down to a target, the shares needed are: current shares × (average − target) ÷ (target − market price). Here, reaching ₹450 takes 150 × 16.67 ÷ 30, which rounds up to 84 shares. Your target must sit between the market price and your current average, and the tool tells you if it does not.
Averaging down: use it carefully
Buying more of a falling stock lowers your break-even price, but it does not fix the reason for the fall.
- Ask why it fell. A weak market and a damaged business are very different things.
- Watch your position size. Averaging adds more money to a single stock, so your risk grows too.
- Look at the money needed. The tool shows the amount needed to reach your target, and it can be large.
- Include costs. This average leaves out brokerage and taxes. For the true cost, check the brokerage calculator.
When you sell, your profit is taxed according to the holding period, and shares are generally treated as sold in the order bought. The capital gains tax calculator gives an estimate. If you prefer a regular investing approach, the SIP calculator shows how monthly amounts can add up. This tool is for working out numbers only, and it is not a recommendation to buy or sell any share.
Frequently asked questions
Is this the same as a simple average?
No. A simple average ignores how many shares you bought at each price. This tool uses a weighted average, which matches how your actual cost works.
Does it include brokerage?
No. It uses the prices you enter. You can add charges to your price per share if you want the exact cost.
Can I enter more than four buys?
Add up earlier buys into one line, using total quantity and their average price, then continue in the next box.
Is this tool free?
Yes. It is free, and we ask for your name and WhatsApp number once when you view your result. All other Uncodemy tools then open without the form.