Stock Average Calculator

Our free Stock Average Calculator (also known as Average Down Calculator) helps you figure out how many more shares you need to buy — and at what price — to bring your average purchase price down to a specific target level. Essential for long-term investors practising averaging down.

What is Stock Averaging?

Stock averaging (or averaging down) is an investment strategy where you buy more shares of a stock as its price falls, reducing your average cost per share. This can improve your break-even point and overall returns when the stock eventually recovers.

How to Use This Calculator

• Current Shares Owned (x) — How many shares you currently hold
• Current Average Price (xa) — Your current average buy price per share
• Target Average Price (fa) — The average price you want to achieve
• New Buy Price (ya) — The price at which you plan to buy more shares

Frequently Asked Questions

Is averaging down a good strategy?

Averaging down works well for fundamentally strong stocks in a temporary dip. It carries risk if the stock continues to decline — use it with careful analysis.

What is the difference between averaging down and averaging up?

Averaging down means buying more as price falls. Averaging up means buying more as price rises, a momentum strategy used by trend traders.

Is this calculator free?

Yes, this stock average calculator is completely free with no registration required.