1. What is Stock Average Price?

The stock average price is the mean price you've paid for all shares of a particular stock in your portfolio. It helps investors track their investment performance and make informed decisions about buying more shares or selling.

2. How Does the Calculator Work?

The calculator uses the simple average price formula:

Where:

• Total Cost — Sum of all purchases (price × quantity)
• Total Shares — Sum of all shares purchased

Explanation: This calculation gives you the effective price per share you've paid across all your purchases of this stock.

3. Importance of Average Price Calculation

Details: Knowing your average price helps determine your break-even point, evaluate profit/loss potential, and make decisions about when to buy more or sell shares.

4. Using the Calculator

Tips: Enter the total amount spent on purchases (in dollars) and the total number of shares acquired. The calculator will compute your average cost per share.

5. Frequently Asked Questions (FAQ)

Q1: Should I include fees in total cost?
A: Yes, for accurate calculation, include all commissions and fees paid when purchasing the shares.

Q2: How does averaging down work?
A: Buying more shares at a lower price reduces your average cost per share, potentially making it easier to profit when the price recovers.

Q3: What if I sold some shares?
A: This calculator shows average purchase price. For current position average, subtract sold shares and their cost from your totals.

Q4: Does this work for fractional shares?
A: Yes, you can enter fractional share amounts (like 0.25 shares) if your brokerage allows fractional share trading.

Q5: How often should I recalculate?
A: Recalculate after each purchase to maintain an accurate average price for your position.