Stock Average Down Calculator
Buying more of a stock that has fallen lowers your average cost per share. Enter both purchases to see your new blended cost basis — the price the stock must reach for you to break even.
Your details
- Total shares
- 200
- Total invested
- $8,000.00
First vs second purchase
- First purchase
- $5,000.0063%
- Second purchase
- $3,000.0038%
Formula
New average cost = (shares₁ × price₁ + shares₂ × price₂) ÷ (shares₁ + shares₂). Your break-even price equals this average cost.
How it works
Averaging down reduces your break-even price, but it also increases your position in a losing investment. It only pays off if the stock recovers — so it works best when your original thesis still holds, not just because the price dropped.
Frequently asked questions
What does averaging down mean?⌄
Buying additional shares of a stock at a lower price than your first purchase, which lowers your average cost per share and your break-even point.
Is averaging down a good idea?⌄
It can be, if you still believe in the investment — it lowers your break-even. But it also concentrates more money in a position that's already down, which raises your risk.
What's my break-even after averaging down?⌄
It's your new average cost per share. The stock needs to rise back to that price for your combined position to break even.
Sources & methodology
Weighted-average cost across two purchases. Excludes commissions. Not investment advice.
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