DipGrid

Tools

Average Down Calculator

See your new average after you buy more. Or pick the average you want and see how many shares it takes.

Not sure where to start? How to use it

Example numbers. Type your own.

Your buys

Up to 10 buys. Fractional shares are fine.

What your broker charges for one buy or one sale, in dollars. It's added to every buy and to the sale.

Your average price

$43.89

With no fees, your break-even is the same: $43.89.

To break even, the price needs to rise 9.7%, from $40.00 to $43.89.

Shares
45
Total invested
$1,975.00
Fees
$0.00
$50.00$45.00$40.00+9.7%to break evenBreak-even $43.89Now $40.00101520Buy 1Buy 2Buy 3Now
$50.00$45.00$40.00+9.7%101520Buy 1Buy 2Buy 3Now

Your buys (shares inside)Average after each buyBreak-even

How to use it

  1. Type each buy: the price per share and how many shares.
  2. Type the price now, plus your fee per trade if you pay one.
  3. Planning your next buy? Switch to Target average.

An example

Say you bought 10 shares of Stock A at $50, then 15 at $45 and 20 at $40. You paid $1,975 for 45 shares, so your average is $43.89. With the price at $40, the stock needs to climb about 9.7% to get you back to even.

Now say you hold just the first 10 shares and want a $45 average. That takes 10 more shares at $40, or $400. A $42 average takes 40 shares, or $1,600.

Questions people ask

How do I calculate my average price per share?

Add up what you paid for all your shares and divide by how many you hold. 8 shares at $25 and 12 at $20 cost $440 for 20 shares, so your average is $22.

How many shares do I need to buy to lower my average?

Shares you hold × (your average − target) ÷ (target − price now). Say you hold 20 shares at $30, the price is $24, and you want a $27 average: 20 × 3 ÷ 3 = 20 shares, or $480. The Target average tab does this for you.

Why can't I get my average all the way down to the price now?

Every new share costs the price now, so each buy pulls your average closer to it but never all the way there.

Does averaging down lower my break-even?

Yes. Without fees, your break-even is your average price, so a lower average means a shorter climb back.

Do fees change my average?

Some brokers fold fees into your average cost and some don't. Either way, fees raise your break-even a little. Type your fee per trade and the calculator adds it to every buy and to the sale.

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