What is a Stock Average Calculator?
A stock average calculator works out your average buy price when you have bought the same stock several times at different prices. It also shows your profit or loss at the current market price and tells you how many more shares to buy to bring your average down (or up) to a target price.
It is an essential tool for investors who average down in a falling market or build positions gradually.
How to use the Stock Average Calculator
- 1Enter the quantity and buy price for each purchase; add as many rows as you need.
- 2Enter the current market price to see your profit or loss.
- 3In the target section, enter your target average and the price you will buy at.
- 4The calculator shows how many shares to buy and how much it will cost.
Stock Average Calculation Formula
Average price = Σ (Quantity × Price) ÷ Σ Quantity
- Shares to reach target
- — Q × (Avg − Target) ÷ (Target − Buy price)
Example: 10 shares at ₹500 and 20 shares at ₹400
| Total shares | 30 |
|---|---|
| Total invested | ₹13,000 |
| Average buy price | ₹433.33 |
| Shares to buy at ₹380 to average ₹400 | 50 shares (₹19,000) |
Should you average down?
- Average down only if the business is still strong and the fall is due to market sentiment, not deteriorating fundamentals.
- Set a maximum position size so one stock doesn't dominate your portfolio.
- Averaging down a falling stock can deepen losses — have a clear exit plan.
- Include brokerage, STT and other charges for your true cost price.
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Results from this calculator are estimates based on the inputs and assumptions you enter. They are for information and education only and are not financial, tax or investment advice.