How does averaging down change my break-even price?

Buying more shares at a lower price reduces your average cost basis. The new break-even price equals total invested divided by total shares. Enter your values to see the exact new target price.

Can I use this for fractional shares?

Yes. You can enter decimal quantities for fractional share purchases from brokerages like Fidelity, Robinhood, or Schwab.

What is the risk of averaging down?

Averaging down lowers your break-even price, but it also increases your total exposure to a single stock. Only average down if your investment thesis remains intact.

📉Stock Average Down Calculator

Find new average cost and break-even price after additional stock purchase

Shares Currently Held

Original Purchase Price ($ per share)

Current Stock Price ($)

Additional Purchase Amount ($)

How Averaging Down Works

Averaging down means buying additional shares of a stock that has dropped in price to lower your overall cost basis. This calculator shows you exactly what your new average cost per share will be, and how much the stock needs to rise before you break even.

The new average cost = (original shares × original price + additional amount) ÷ (original shares + new shares purchased). The break-even return = (new average cost − current price) ÷ current price × 100.

While averaging down reduces your break-even price, it also concentrates more capital in a single position. Always reassess the underlying fundamentals before buying more of a falling stock.

Frequently Asked Questions

Does this work for ETFs and mutual funds too?

Yes. The same cost-basis math applies to any security — stocks, ETFs, or fractional shares. Enter the current NAV or price as the "current price."

What if the current price is already above my average?

If the current price exceeds your new average cost, the calculator will show "Break-even achieved" and display your current unrealized gain.

How Averaging Down Works

Frequently Asked Questions

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