Investment Tool

Average Price Calculator

Calculate your weighted average price after multiple purchases. Add each buy with its price and quantity to see your true average cost per unit.

Investment Tool

Average Price Calculator

Calculate your weighted average price after multiple purchases. Add each buy with its price and quantity to see your true average cost per unit.

Your Purchases
Enter each buy order with the price per unit and quantity purchased
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How Average Price Is Calculated

The average price (also called weighted average cost or cost basis) is calculated by dividing your total investment amount by the total number of units purchased. This is not a simple average of prices — it's a weighted average that accounts for how much you bought at each price level.

Average Price = Total Amount Invested ÷ Total Units Purchased

Why Average Price Matters for Investors

Your average price is your break-even point — the price at which your investment neither gains nor loses money. Knowing your exact average price helps you make informed decisions about when to sell, whether to buy more, and how much profit or loss you're actually sitting on. Many brokerage platforms show this automatically, but if you've made purchases across different accounts or exchanges, calculating it manually is essential.

Averaging Down: Strategy or Trap?

Buying more shares after a price drop lowers your average price, a strategy called 'averaging down.' This can be powerful if the asset recovers, as you need a smaller price increase to break even. However, it's important to only average down on assets you believe in fundamentally — otherwise, you're simply increasing your exposure to a declining investment. Use our break-even calculator to compare different averaging-down strategies like DCA, Martingale, and Value Averaging.

Disclaimer: This calculator is for educational and informational purposes only. It is not financial advice. Always consult a qualified financial professional before making investment decisions.

Common Use Cases

When you buy an asset multiple times at different prices, your average cost per unit determines your true break-even point. This is crucial for investors who practice dollar-cost averaging (DCA) or who add to positions during market dips.

Knowing your exact average price helps you avoid two common mistakes: selling too early (before reaching your actual break-even) or holding too long (not realizing you are actually in profit). This is especially important when you buy across different exchanges or brokers where the average is not automatically calculated for you.

  • DCA tracking: Calculate your average entry after regular periodic investments
  • Multi-exchange portfolios: Find your true average when buying the same asset on different platforms
  • Tax reporting: Determine your cost basis for capital gains calculations
  • Averaging down strategy: See how additional purchases at lower prices reduce your break-even price

How Average Price Is Calculated

The average price (also called weighted average cost or cost basis) is calculated by dividing your total investment amount by the total number of units purchased. This is not a simple average of prices — it's a weighted average that accounts for how much you bought at each price level.

Why Average Price Matters for Investors

Your average price is your break-even point — the price at which your investment neither gains nor loses money. Knowing your exact average price helps you make informed decisions about when to sell, whether to buy more, and how much profit or loss you're actually sitting on. Many brokerage platforms show this automatically, but if you've made purchases across different accounts or exchanges, calculating it manually is essential.

Averaging Down: Strategy or Trap?

Buying more shares after a price drop lowers your average price, a strategy called 'averaging down.' This can be powerful if the asset recovers, as you need a smaller price increase to break even. However, it's important to only average down on assets you believe in fundamentally — otherwise, you're simply increasing your exposure to a declining investment. Use our break-even calculator to compare different averaging-down strategies like DCA, Martingale, and Value Averaging.

Disclaimer: This calculator is for educational and informational purposes only. It is not financial advice. Always consult a qualified financial professional before making investment decisions.