# Stock Average Calculator

stock average calculator calculate the average share price you paid for a stock and determine your cost whether you average up or average down on a position.

Shares Bought Purchase Price
1.      \$
2.      \$
3.      \$
4.      \$
5.      \$

## What is a stock average?

stock average is the average price of a stock that a trader buys through multiple transactions or trades.

Let's say you buy Microsoft stock 3 times with a different number of shares and price each time, the stock average is the average price you paid to acquire these shares.

## How to calculate the stock average?

To calculate the average price of stock positions, you need to use both the number of shares and the price you paid. The stock average formula is given below.

A = (E1*N1+E2*N2+...En*Nn)/(N1 + N2 + Nn), where

A = the average price
E = the entry price or the stock acquisition price.
N = the number of shares
n = the number of transactions

For example, if you traded the Microsoft stock 3 times with the following transactions.

1. MSFT - \$225, 20 shares
2. MSFT - \$310, 15 shares
3. MSFT - \$390, 10 shares

To calculate the average price, we will plug in the numbers to the stock average formula

A = (225*20 + 310*15 + 390*10) / (20 + 15 + 10)
A = (4500 + 4650 + 3900) / (45)
A = 13050 / 45
A = 290

Therefore, the average price that you paid for the Microsoft stock is \$290. Anything above \$290 is your profit.

## Average Down Calculator

As you can see, calculating the stock average of multiple transactions takes a lot of manual work, that's why we built this average down calculator to make traders' lives easier.

Traders can enter all their trades of the same stock for multiple transactions up to 5 trades.

Each trade requires the number of shares bought and the stock price.

Shares Bought - the number of shares that you buy

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