Share Average Calculator
Averaging up or down? Enter two purchases and see your combined quantity, total cost and new average price per share.
What is your average share price?
Buy the same stock twice at two different prices and your holding no longer has "a" purchase price — it has one blended cost per share, the weighted average of both buys. That average is the number that matters from then on: it is your break-even level, and it decides whether the position shows a profit or a loss at any market price.
This calculator takes two purchases — quantity and price for each — and returns your total shares, total investment and the new average price per share. Use it before averaging down on a fall, or adding to a winner on the way up.
The average price formula
Average price = (Q₁ × P₁ + Q₂ × P₂) ÷ (Q₁ + Q₂)
- Q₁, P₁ — quantity and price per share of the first purchase
- Q₂, P₂ — quantity and price per share of the second purchase
It is simply total money spent divided by total shares held — a weighted average, so the larger purchase pulls the result towards its price.
How to use this calculator
- Enter the first purchase quantity and its price per share.
- Enter the second purchase quantity and its price per share — the buy you have made or are planning.
- Read off total shares, total investment and the average price per share.
To test a planned purchase, keep adjusting the second quantity until the average lands where you want it — the outputs update as you move the sliders.
A worked example
100 shares bought at ₹250, then 150 more at ₹180:
- First purchase: 100 × ₹250 = ₹25,000; second: 150 × ₹180 = ₹27,000
- Total holding: 250 shares for ₹52,000
- New average price: ₹52,000 ÷ 250 = ₹208 per share
The stock now only needs to climb back to ₹208 — not the original ₹250 — for the position to break even.
Averaging down is a decision, not a fix
Averaging down lowers your break-even, but it does so by putting more money into the same falling stock — in the example above, your exposure nearly doubles from ₹25,000 to ₹52,000. The lower average only helps if the original reason for owning the stock still holds; if the business has genuinely deteriorated, a lower average on a larger position simply deepens the loss. Averaging up in a rising stock raises your cost, but it adds to a position the market is confirming.
Note that this calculator works on clean prices: brokerage, STT and stamp duty are not included, so your true break-even sits slightly above the computed average.
No. It lowers the price at which you break even, but it increases the money at risk in the same stock. If the price keeps falling, the loss on the larger position grows faster. Average down only when your original investment case is intact.
Not necessarily. For capital gains on demat shares, cost is matched on a first-in-first-out (FIFO) basis within each demat account — the shares you bought first are treated as sold first. Your blended average is a portfolio metric, not the statutory cost basis.
For listed equity: gains on shares held over 12 months are long-term, taxed at 12.5% on the amount above ₹1,25,000 a year; shares held 12 months or less produce short-term gains taxed at 20%. These are the rates currently in force and can change in a future Finance Act.
No — it uses the raw quantities and prices you enter. Brokerage, STT, exchange charges and stamp duty add a small amount to your true cost, so your actual break-even is slightly above the computed average.
Yes. Set either quantity to zero and that leg contributes nothing — the average simply equals the other purchase's price. Useful for comparing a planned second buy against not buying at all.