Stock Tools
Stock Average Down Calculator
Calculate your new average cost basis for a stock position after buying more shares at a different price.
Result
Current Total Cost: -
New Purchase Cost: -
Total Shares:
New Average Price: -
Change in Average: -
How average down works
Averaging down involves buying more shares of a stock at a lower price than your original purchase. This reduces the average price you paid for all your shares, meaning you can reach a break-even point or profit sooner if the stock price recovers.
New Average = (Total Cost of All Shares) / (Total Number of Shares)
Frequently Asked Questions
What does averaging down mean?
Averaging down means buying more shares after the stock price falls, which lowers your average cost per share. It can reduce your breakeven price, but it also increases your total position size and risk.
Is averaging down a good strategy?
It depends on the stock, your risk tolerance, and your reason for buying more. Averaging down can help if your original thesis is still valid, but it can also make losses larger if the stock keeps falling.
How do I calculate my new average stock price?
Add the total cost of your original shares and new shares, then divide by the total number of shares owned. The result is your new average cost per share.
What is the risk of averaging down?
The main risk is adding more money to a losing position. If the stock continues to decline, both your dollar loss and portfolio exposure can increase.