Inputs
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New average cost
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Enter values to calculate.
Total shares
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Total invested
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Formulas: new average = (shares1 x price1 + shares2 x price2) / total shares. Weighted by shares, not a simple midpoint.
Enter your current shares and a new purchase to get your new average cost per share.
Results update live as you type.
Enter values to calculate.
Buying more shares below your original price pulls the weighted average cost down, so the stock needs a smaller rebound to break even. 100 shares at $50 plus 100 at $30 averages to $40, not $35 or $30.
Averaging down doubles your exposure to a falling stock. It only makes sense if the investment thesis is intact; adding to a broken business just to lower the average is throwing good money after bad.