How to Use the Stock Averaging Down Calculator
Averaging down means buying more shares after the price drops below your original cost, lowering your average cost per share. Enter your current position, current price, and additional budget to calculate your new average cost and the price recovery needed to break even.
Additional shares purchased = floor(budget ÷ current price). New Average Cost = (Current Shares × Current Avg + Additional Shares × Current Price) ÷ Total Shares. This strategy reduces the break-even price but increases total exposure to the stock.
Frequently Asked Questions
Buying more shares after the price falls below your original purchase price. This lowers your average cost, reducing the gain needed to break even when the price recovers.
If the stock keeps falling, your total loss grows. Averaging down works for temporary dips, but can be costly if the company's fundamentals are worsening.
New Avg = (Current Shares × Current Avg + Additional Shares × Buy Price) ÷ Total Shares. Additional shares = floor(budget ÷ current price).