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Average cost calculator

Bought a stock that's fallen since? Enter your current position and the new purchase: the calculator shows your new average cost and the price at which you break even.

New average price
Total investment
You break even at

Indicative calculation for educational purposes: not a forecast nor financial advice.

Averaging down lowers your break-even price but increases exposure: it's rational only if your thesis on the company is intact and the drop reflects the market, not a deteriorating business.

The psychological trap is averaging down to avoid admitting a mistake: before adding, ask whether you'd buy this stock today starting from zero. If the answer is no, you're just chasing the loss.

Frequently asked questions

Is averaging down a good idea?

It depends on why the price fell: on a diversified ETF it's standard practice (the DCA principle); on a single stock falling for real problems it can turn a small loss into a big one.

What does average cost mean?

The weighted average cost of your shares: total investment divided by share count. Below that price you're at a loss, above it in profit.

Related terms

What is dollar cost averaging (DCA)?What is a limit order?What is an investment portfolio?