Result
Average buy price
₹237.14
Total invested
₹16,600
70 shares
| Buy | Price | Quantity | Amount |
|---|---|---|---|
| 1 | ₹250 | 40 | ₹10,000 |
| 2 | ₹220 | 30 | ₹6,600 |
Averaging down a trade whose stop loss or zone has already broken adds size to a failed idea. Decide your exit before you add more shares.
What does this stock average calculator do?
A stock average calculator finds the weighted average price of shares bought at different prices: total amount invested ÷ total shares. Its second mode works backwards, telling you how many shares to buy at a new price to bring your average to a target. It shows the maths only — whether adding to a position is wise is a separate question.
How is the average price of shares calculated?
The average price is a weighted average: each purchase counts in proportion to the number of shares bought. Multiply each price by its quantity, add the results to get the total invested, and divide by the total number of shares. A simple average of the prices is wrong whenever the quantities differ.
Average = (P1 × Q1 + P2 × Q2 + … + Pn × Qn) ÷ (Q1 + Q2 + … + Qn)How many shares do you need to buy to reach a target average?
The second mode solves for the quantity to buy at a new price so that the combined average equals your target. The target must lie between your current average and the new price, because mixing two prices can only produce an average between them. The answer is rounded up, so the resulting average lands at or slightly past the target.
New shares = ceil( Current qty × (Current average − Target) ÷ (Target − New price) )ceil means round up. The same formula works for averaging up, when the new price is above the current average.Notice how expensive the target becomes as it approaches the new price. Bringing the same holding to a ₹450 average needs 100 × 50 ÷ 50 = 100 more shares, or ₹40,000 — roughly as much capital again as the original position, all in a stock that has already fallen 20%.
Should you average down a losing trade?
In a planned trade, averaging down usually means adding to a position that has already proven the setup wrong. In the demand-supply method, a trade is invalidated when price breaks through the zone's distal line, where the stop loss belongs. Buying more below a broken zone does not repair that thesis; it multiplies the size of a losing position, so a controlled loss can grow into a much larger one.
This is different from a long-term investing accumulation plan, where an investor decides in advance to build a position in a business in tranches — for example at successive demand zones on a higher timeframe — with a fixed total allocation. The difference is intent and planning: buying in stages because it was the plan is not the same as buying more because a trade went wrong.
| Planned accumulation (investing) | Averaging a failed trade | |
|---|---|---|
| Decided | Before the first purchase | After price moves against you |
| Total size | Fixed allocation, split into tranches | Grows with each new low |
| Exit rule | Defined by the investment thesis | Usually the stop loss was ignored |
| Effect on risk | Known in advance | Increases as the position grows |
What does the calculator not include?
The calculator works on purchase prices and quantities only. It does not add brokerage, STT, stamp duty or other charges, so the average shown by your broker or in a contract note can differ slightly. Averages after partial sales, bonus issues or splits also need adjusting before you enter them.
- Charges: add them to the purchase value if you want an all-in cost per share.
- Splits and bonuses: adjust both the quantity and the price so the invested amount stays the same.
- Tax records: capital-gains calculations can follow different matching rules from a simple running average, so keep your contract notes.
Frequently asked questions
How do you calculate the average price of a stock bought at different prices?
Multiply each purchase price by its quantity, add these amounts, and divide by the total number of shares. For 100 shares at ₹500, 50 at ₹440 and 50 at ₹410, the total invested is ₹92,500 for 200 shares, so the average is ₹462.50. Averaging only the prices would give ₹450, which is wrong because the quantities differ.
How many shares should I buy to average down?
Use new shares = current quantity × (current average − target) ÷ (target − new price), rounded up. Holding 100 shares at ₹500 with the price at ₹400, reaching a ₹460 average needs 67 shares costing ₹26,800. The calculator does this instantly, but check first whether the original trade's stop loss has been hit — the maths does not tell you whether adding is sensible.
Share ka average price kaise nikale?
Har purchase ka price × quantity karke total investment nikaalein, phir use total shares se divide karein. Jaise 100 shares ₹500 par aur 50 shares ₹440 par: ₹50,000 + ₹22,000 = ₹72,000, aur 150 shares, to average = ₹480. Dhyan rakhein, trade ka stop loss toot gaya ho to average down karna loss ko badha sakta hai.
Is averaging down a good strategy?
It depends on what is being averaged. For a short-term trade whose zone has broken, averaging down increases the size of a position the chart has already invalidated, which can multiply the loss well beyond the planned stop. For long-term investing, buying in planned tranches with a fixed total allocation is a different, deliberate approach. This calculator shows the numbers; it does not recommend either.
Can I use the calculator to average up?
Yes. If the new price is above your current average, the target average must sit between the two. Holding 50 shares at ₹300 with the price at ₹360, a ₹330 target needs 50 × (₹300 − ₹330) ÷ (₹330 − ₹360) = 50 more shares. Adding to a winning position raises your average, so recheck the stop loss and total risk afterwards.
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Educational calculator only. Results depend entirely on the numbers you enter and are not investment advice or a recommendation to trade.