Use this calculator to determine your new average price after buying additional shares.
Average down or average up is a strategy in which investors buy more shares of an asset they already own, which results in a new average cost per share. It's useful to understand how additional purchases affect your average price.
Our Average Down / Up Calculator helps you quickly determine your new average price per share and total position size when you average down or up on your investments.
Averaging down means buying more of a stock when the price drops — lowering your average cost per share. Averaging up is the opposite — buying more when the price rises, increasing your average cost. Both strategies are common in long-term investing and trading.
This calculator is extremely useful for both beginners and experienced investors. It provides:
Suppose you initially bought 100 shares at $50. Later, you bought 50 more shares at $40.
Your new average price per share would be:
((100 x 50) + (50 x 40)) ÷ (100 + 50) = $46.67
This shows that averaging down reduced your cost basis — a useful move if you're confident in the company's long-term prospects.
These strategies should align with your investment goals and analysis:
Not necessarily. It can lower your cost basis, but if a stock continues to decline, it may increase your losses. Make sure you have strong conviction in the company.
Use it whenever you add to an existing position to see how your cost basis changes and better manage your portfolio.
Yes! It works with any asset where you accumulate positions over time — including stocks, ETFs, crypto, or mutual funds.
Averaging down means buying more of a stock at a lower price than your current average, reducing your overall cost per share.
Averaging up means buying more of a stock at a higher price, which increases your overall average cost per share.
It depends on the fundamentals of the stock and your investment horizon. It can improve your cost basis if the stock eventually recovers.
The Average Down / Up Calculator is a must-have tool in every investor’s toolkit. It helps you stay informed about your investment cost and make smarter decisions. Try it today and take control of your financial future!
Attention! Trading on the stock market involves financial risks and is not suitable for everyone. The www.stocks-expert.com does not provide financial market trading services; it is for informational purposes only and is not responsible for the consequences of your trading decisions or the operation of the software. Before starting to trade in any markets, make sure you understand the risks associated with trading and that you have a sufficient level of training.