Stock Average Calculator
Calculate your average buy price across multiple purchases of the same stock or mutual fund. Add as many tranches as you need — useful when averaging down or staggering entries.
Purchase tranches
What is stock averaging?
When you buy the same stock or mutual fund multiple times at different prices, your effective cost is the weighted average of all purchase prices. This is called the average buy price or cost basis. It determines whether you're in profit or loss at any given market price.
The formula
Average price = Total invested ÷ Total sharesAveraging down vs averaging up
- Averaging down — buying more as the price falls, lowering your average cost. Works if the business is fundamentally sound. Dangerous for fundamentally weak stocks or sectors in structural decline.
- Averaging up (pyramiding) — adding more as the price rises on momentum. Increases exposure to a winning trade. Raises average cost but only after the position is already profitable.
Mutual fund NAV averaging
The same logic applies to mutual fund SIPs — each month you buy at a different NAV. The average NAV across all purchases is your effective cost per unit. At redemption, your gain = (exit NAV − avg NAV) × total units.
Want this number turned into a plan?
Stock Average Calculator answers the math. A stock average calculator number lives inside a goal — retirement, tuition, a house, freedom. Sulekha Sen can map it to yours.
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