Stock Average Calculator

Averaging down can reduce your cost basis if the stock eventually recovers. However, it can also increase losses if the stock continues to decline. Only average down if your investment thesis for the company remains intact.

Use the rolling average method: enter your current total shares and average price as Purchase 1, then add the new purchase as Purchase 2. This gives the new combined average.

Your capital gain or loss is calculated as Sale Price - Average Cost per share. Accurate cost basis tracking is required for tax reporting. Most brokerages track this automatically.

FIFO (First In, First Out) sells oldest shares first, which may have a different cost basis. Average cost uses the weighted average of all shares. The IRS allows both methods for mutual funds but typically requires FIFO for individual stocks.

Yes, if a stock is rising and you believe it will continue, adding shares at higher prices (averaging up) is a valid strategy. Your average cost rises, but you increase your position in a winning stock.

By buying at multiple price points over time, you avoid the risk of investing all your money at a market peak. Your average cost tends to be lower than buying at the highest price and higher than buying at the lowest.

For precise cost basis, yes. Divide the total cost (share price × shares + commission) by the number of shares for each purchase. This gives a commission-adjusted average cost.

Your average cost per share is divided by the split ratio. In a 2-for-1 split, your $100 average becomes $50, but you now own twice as many shares. Total value is unchanged.

Yes, the average cost calculation works the same for any asset — stocks, crypto, ETFs, or commodities. Enter the number of units and price per unit for each purchase.