Stock Average Down Calculator - Cost Basis Calculator & Portfolio Performance Calculator
Free stock average down calculator & cost basis calculator. Calculate average cost basis, portfolio performance, and dollar-cost averaging strategies for stock investments. Our calculator helps you understand portfolio performance and optimize your investment strategy when averaging down on stock positions.
Last updated: December 15, 2024
Need a custom portfolio calculator for your platform? Get a Quote
Current Holdings
Additional Purchases
Portfolio Analysis
Average Cost Basis
$47.14
Total Shares:
175
Total Cost:
$8,250
Current Value:
$8,750
Total P&L:
+$500
Total Return:
+6.06%
Averaging Down Strategy:
- • Lower your average cost basis by buying more shares at lower prices
- • Reduces breakeven point but increases total investment
- • Consider company fundamentals before averaging down
- • Risk management is crucial - don't over-invest in declining stocks
Important Considerations:
Averaging down can increase losses if the stock continues to decline. Only average down on stocks you believe in long-term and have done thorough research on. Diversification is key to managing risk.
Stock Average Down Calculator Types & Features
Calculation features
Multiple Purchases, Average Cost
Tracks all purchases to determine your true cost basis per share
Performance metrics
P&L, Returns, Current Value
Comprehensive analysis of gains, losses, and total portfolio value
Strategy types
Regular, Periodic, Lump Sum
Compare different investment timing strategies and their outcomes
Position analysis
Size, Weight, Allocation
Understand position sizing and portfolio concentration risks
Price calculation
Weighted Average, Volume
Accurate weighted average calculations based on share volume
Investment analysis
Risk, Return, Strategy
Complete investment analysis with risk and return considerations
Quick Example Result
For 100 shares at $50, plus 50 shares at $45, plus 25 shares at $40:
Average Cost Basis
$47.14
Total Return
6.06%
How Our Stock Average Down Calculator Works
Our stock average down calculator uses weighted average calculations to determine your true cost basis when buying additional shares at different prices. The calculation considers all your purchases to provide accurate portfolio analysis and performance metrics for your stock investments.
The Average Cost Basis Formula
Average Cost = (Shares₁ × Price₁ + Shares₂ × Price₂ + ...) ÷ Total SharesTotal Cost = Sum of all (Shares × Price) for each purchaseTotal Return % = (Current Value - Total Cost) ÷ Total Cost × 100This formula calculates the true average cost per share by weighting each purchase by the number of shares bought. It provides an accurate basis for determining your breakeven point and portfolio performance.
Shows how averaging down affects your cost basis and returns
Key Factors in Averaging Down Strategy
Several factors influence the effectiveness of averaging down. Understanding these variables helps you make informed decisions about when and how much to invest in declining positions.
- Original position size and cost basis
- Amount of price decline from original purchase
- Additional capital available for investment
- Company fundamentals and outlook
- Overall portfolio diversification
- Risk tolerance and investment timeline
Sources & References
- Securities and Exchange Commission (SEC) - Cost Basis Reporting and Portfolio ManagementOfficial guidance on cost basis calculations and reporting
- Financial Industry Regulatory Authority (FINRA) - Investment Strategies and Risk ManagementEducational resources on investment strategies and portfolio management
- Investopedia - Averaging Down Investment StrategyComprehensive guide to averaging down and portfolio management strategies
Need help with other investment strategies? Check out our covered call calculator and opportunity cost calculator.
Get Custom Calculator for Your PlatformStock Average Down Calculator Examples
Purchase History:
- Initial Purchase: 100 shares at $60.00
- First Average Down: 50 shares at $50.00
- Second Average Down: 25 shares at $40.00
- Current Price: $55.00
Calculation Steps:
- Calculate total shares: 100 + 50 + 25 = 175 shares
- Calculate total cost: (100×$60) + (50×$50) + (25×$40) = $9,250
- Calculate average cost: $9,250 ÷ 175 = $52.86
- Calculate current value: 175 × $55 = $9,625
- Calculate total return: ($9,625 - $9,250) ÷ $9,250 = 4.05%
Result: Average Cost Basis = $52.86, Total Return = 4.05%
By averaging down from $60 to $52.86, you've improved your breakeven point significantly.
Dollar Cost Averaging Example
$1,000 monthly investment over 12 months
Average price: $47.50, Total invested: $12,000
Position Sizing Example
5% portfolio allocation limit on single stock
Max investment: $5,000 in $100,000 portfolio
Frequently Asked Questions
Found This Calculator Helpful?
Share it with others who need help with portfolio management
Suggested hashtags: #StockInvestment #PortfolioManagement #AveragingDown #Investing #Calculator