💧 Stock Average Price (Averaging Down) Calculator

Averaging down means buying more shares after the price drops to lower your average cost basis. For example, buying 100 shares at 10,000 and then another 100 at 8,000 gives a new average of (100×10,000 + 100×8,000) ÷ 200 = 9,000. A lower average means you break even sooner on a smaller rebound, but continued declines can compound your losses — so check whether the company's fundamentals are actually sound before adding more.

Buying more just because the price is "cheaper" can be dangerous. If the decline reflects deteriorating earnings, structural industry decline, or accounting concerns, averaging down often snowballs losses. On the other hand, a temporary market-wide pullback affecting a fundamentally sound company can make phased buying reasonable. Always set a hard cap on total capital committed to a single position.

Decide in advance how many tranches you'll split your total intended investment into — for example 3-4 purchases triggered at set drawdown levels (-10%, -20%, -30%). Use this calculator's extra-buy rows to simulate how your average price changes at each stage, then check your break-even price before actually trading.