Average Price Formula:
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The average price is the mean value of all stock prices in your portfolio. It helps investors understand their cost basis and evaluate performance.
The calculator uses the simple average formula:
Where:
Explanation: The equation calculates the arithmetic mean of all input prices.
Details: Knowing your average price helps determine break-even points, evaluate investment performance, and make informed buying/selling decisions.
Tips: Enter all stock prices in USD, separated by commas or new lines. The calculator will ignore any non-numeric values.
Q1: Should I include commission fees in the price?
A: For accurate cost basis calculation, yes. Add commission fees to each purchase price before averaging.
Q2: What's the difference between simple and weighted average?
A: Simple average treats all prices equally, while weighted average accounts for different share quantities at each price.
Q3: How often should I recalculate my average price?
A: Recalculate after each purchase to maintain an accurate cost basis.
Q4: Does this work for fractional shares?
A: Yes, as long as you enter the exact purchase price per fractional share.
Q5: Can I use this for crypto currencies?
A: Yes, the same principle applies to any asset where you want to calculate average purchase price.