1. What is Average Stock Price?

The average stock price represents the mean purchase price of shares in your portfolio. It's calculated by dividing the total amount invested by the number of shares owned.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Cost — Sum of all purchase amounts (USD)
• Shares — Total number of shares owned

Explanation: This calculation helps investors understand their cost basis per share, which is crucial for evaluating investment performance.

3. Importance of Average Price Calculation

Details: Knowing your average purchase price helps determine when to sell for profit, calculate capital gains taxes, and make informed decisions about buying more shares.

4. Using the Calculator

Tips: Enter the total amount spent on stock purchases (in USD) and the total number of shares acquired. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I include fees in total cost?
A: Yes, for accurate cost basis calculation, include all commissions and fees associated with purchases.

Q2: How does this differ from weighted average?
A: This is a weighted average calculation when you input the total of multiple purchases.

Q3: What if I bought shares at different prices?
A: This calculator works for multiple purchases - just sum all costs and all shares from all transactions.

Q4: How precise should the share count be?
A: For stocks that trade in whole shares, use whole numbers. For fractional shares, include decimals.

Q5: Does this account for stock splits?
A: No, you must adjust pre-split numbers before using this calculator.