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Position averaging
Average price calculator
Calculate a new average price after one or more additional purchases, or find out how much you need to invest to reach a selected average.
Current position
What you already own
Works the same way for stocks and crypto: the weighted-average formula is identical.
Current position cost basis39,300 $
Planned purchases
Add one or more purchases
Choose how to enter a purchase: by dollar amount or by number of shares/coins. The calculator fills in the other value automatically.
Purchase input
1
Units bought0.02857143
Visualization
How the average price changes after each purchase
Step-by-step calculation
| Step | Price | Amount | Bought | Total units | Average |
|---|---|---|---|---|---|
| Purchase 1 | 70,000 $ | 2,000 $ | 0.02857143 | 0.52857143 | 78,135.14 $ |
Save calculation
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How the calculation works
How average purchase price is calculated
A position's average price is not the simple average of your trade prices. Each purchase is weighted by the amount of the asset you bought.
Average price formula
Average price = sum of (quantity × purchase price) ÷ total asset quantity.
If you enter a purchase amount, the calculator first converts it to quantity as amount ÷ price, then applies the same weighted-average formula.
Example: 10 shares at $100, then 5 more at $80
- First purchase: 10 × $100 = $1,000
- Second purchase: 5 × $80 = $400
- Total: 15 shares and $1,400 invested
Reverse calculation
How to calculate how much to buy to reach a target average
If you know your current position, the new purchase price and your target average, the required quantity can be calculated directly: Qbuy = Qcurrent × (Current average − Target average) ÷ (Target average − Buy price). The target must be between the current average and the new purchase price.
For example, if you hold 10 shares at a $100 average, can buy at $80 and want a $90 average, you need 10 more shares — an $800 purchase.
Important limitations
- Brokerage fees, taxes and currency-conversion costs are not added automatically.
- Sales, stock splits, reverse splits, reinvested dividends and other corporate actions can make your broker's cost basis differ from this calculation.
- Lowering your average cost does not automatically make an investment better and increases the capital committed to the position.
Frequently asked questions
Why can't I just add the purchase prices and divide by the number of trades?
Because trades can have different sizes. A purchase of 100 shares must influence the average more than a purchase of 1 share, so the calculation uses a quantity-weighted average.
Can I use this calculator for ETFs and crypto?
Yes. The formula depends only on price and asset quantity, so it works the same way for stocks, ETFs, cryptocurrencies and other assets bought in multiple lots.
Are averaging down and DCA the same thing?
No. DCA usually means investing on a regular schedule regardless of price. Averaging down means adding after a price decline to reduce the position's average cost.
Why can a target average be unreachable?
A single new purchase can only move your average toward that purchase price. The target therefore has to sit strictly between your current average and the price of the planned purchase.
Does the calculation include fees and taxes?
No. The base calculation uses price and quantity. For tax cost basis, follow your broker's methodology and the rules that apply in your jurisdiction.
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