A Stock Average Calculator is a simple online tool that helps investors calculate the average cost per share when they buy the same stock multiple times at different prices. Instead of manually computing every transaction, the calculator instantly gives you:
- The average buying price
- The total quantity of shares
- The total investment amount
This tool is especially useful if you're using the stock averaging method to reduce your average purchase price during market fluctuations. It helps track your investment cost accurately and make informed buy/sell decisions.
Stock Average Calculator Formula
The formula used to calculate the average stock price is:
Average Price Per Share = Total Investment ÷ Total Quantity
Where:
- Total Investment = Sum of (Quantity x Price) for each transaction
- Total Quantity = Sum of shares purchased across all transactions
Example:
- 10 shares @ ₹100 = ₹1,000
- 20 shares @ ₹90 = ₹1,800
- Total Investment = ₹2,800 | Total Shares = 30
- Average Price = ₹2,800 ÷ 30 = ₹93.33 per share
This formula helps you understand your real cost per share and plan exits or averaging strategies accordingly.
