Stock Average Calculator helps you to calculate average share price you paid for a stock. Enter your purchase price for each buy to get your average stock price.
Stock Average Calculator
First Purchase
Second Purchase
Calculation
Here the result will appear.
Other Calculators :- PPP Calculator
Stock Market Average Calculator is a tool or formula used by investors to calculate the average price at which they have purchased shares of a particular stock over multiple transactions.
This is useful when an investor buys shares of the same stock at different prices over time. By averaging the prices, the investor can get a better idea of their overall cost per share, which helps in making decisions about when to buy, sell, or hold the stock.
How To Use Stock Average Calculator ?
Using a stock average calculator is simple. Here’s a step-by-step guide to help you understand how to use it:
Steps to Use a Stock Average Calculator:
Enter the Number of Shares Purchased: For each transaction where you bought shares of the same stock, you need to know how many shares you bought.
Enter the Purchase Price per Share: For each transaction, input the price at which you bought the shares.
Repeat for All Transactions: Enter details of each purchase you made. If you’ve made multiple transactions at different prices, list each one.
Calculate the Total: The calculator will multiply the number of shares by the purchase price for each transaction to find the total cost for that transaction. It then adds up the total costs of all transactions and divides that by the total number of shares purchased. Average Share Price Calculator is highly accurate by sharecirculate.
Example:
Suppose you bought: 10 shares at $50, 15 shares at $55, 20 shares at $60
You would enter these into the calculator:
| Number of Shares | Purchase Price |
|---|---|
| 10 | $50 |
| 15 | $55 |
| 20 | $60 |
Advantages of Share Price Average Calculator
Tracks multiple stock purchases: If you buy the same stock at different prices, the calculator helps average out the total cost.
Simplifies decision-making: Knowing your average price per share helps determine profit or loss when selling.
Easy to use: You enter details like the number of shares and purchase price for each transaction, and the calculator provides the average price.
Cost management: It gives a clear idea of how much you’ve invested over time in a particular stock.
How Stock Averages Work in Practice
To understand stock averages without formulas, think of it as distributing the total investment cost across all the shares you own.
Imagine you’re filling a jar with marbles, where each marble represents a share, and the total weight of the jar represents the total cost of your investment. The average weight of the marbles is equivalent to the stock average—it tells you how much each marble (share) contributes to the total weight (cost).
For instance: If you buy 10 shares at $50 each, your average cost is $50 per share. If you later buy another 10 shares at $60 each, the average cost changes because you’ve added more marbles (shares) with a different weight (price).
How to use Average Stock Price Calculator?
Enter the number of shares you bought and the price per stock in the first purchase, then enter your second quantities and share price then calculate an average for the number of shares you bought in the second purchase.
How Does Stock Average Calculator Works?
Take an example, you bought 10 stocks of Tata Motors at a price of 200. Now they are moving downwards. Now the stock price has gone down to 150. But you have faith that it will go upwards in future
You want to reduce the average stock price by buying more stocks but you need to calculate how many more stocks you need to buy to make the average closer to the current price.
Here comes this tool Share Market Average Calculator / Stock Average Calculator by sharecirculate. Based on your inputs, it will tell you the average price of stock.
Stock Average Calculator Pros and Cons
Averaging down is a very profitable strategy if the company you’re buying has a history of continued success and has good fundamentals and a strong balance sheet.
The company you are investing in remains unchanged in everything then doing averaging into that company is good.
If you kept averaging down in companies that have bad fundamentals, you could have lost everything because of bankruptcy or any other reasons. The share price can go to zero. They can never recover from that.
Can I use this stock market average calculator in any country?
Yes, of course. You can use this stock market average calculator in any country including the India, US, Canada, Australia, France, United Kingdom and many more.
