# Stock Average Calculator

Buying 100 shares at ₹500 and 50 more at ₹440 gives an average buy price of ₹480 on 150 shares.

Source: https://companystockprice.com/calculators/stock-average-calculator
Last reviewed: 29 September 2026 (2026-09-29)

If you bought the same share at different prices, your average cost is the total amount paid divided by the total number of shares.

## Formula
Average price = Σ(quantity × price) ÷ Σ quantity

## Example
Buying 100 shares at ₹500 and 50 more at ₹440 gives an average price of ₹480; total cost is ₹72,000.

## Scenarios
_Averaging down: 100 shares already bought at ₹500, extra shares bought at ₹400_

| Extra shares at ₹400 | Total shares | Total cost | Average price | Rise needed from ₹400 to break even |
|---|---:|---:|---:|---:|
| 0 | 100 | ₹50,000 | ₹500.00 | 25.0% |
| 25 | 125 | ₹60,000 | ₹480.00 | 20.0% |
| 50 | 150 | ₹70,000 | ₹466.67 | 16.7% |
| 100 | 200 | ₹90,000 | ₹450.00 | 12.5% |
| 200 | 300 | ₹1,30,000 | ₹433.33 | 8.3% |
| 400 | 500 | ₹2,10,000 | ₹420.00 | 5.0% |

## What changes the result
- The quantity bought at each price — the average moves towards the price of the larger purchase.
- Brokerage, STT, stamp duty and other charges, which add to your true cost.
- Bonus issues and stock splits, which change the share count and must be adjusted for.
- Partial sales, which do not change the average of the shares you still hold (FIFO is used for tax).

## How to use this calculator
1. Enter the quantity and price of your first purchase.
2. Add each further purchase of the same stock.
3. Enter the current market price.
4. Read your average buy price, total cost and current profit or loss.

## FAQ
**Does averaging down reduce risk?**
It lowers your average cost but increases your exposure to that stock. Review why the price fell before buying more.

**How do bonus shares and splits affect my average?**
The total cost stays the same but the number of shares rises, so the average price falls proportionally. For a 1:1 bonus, the average halves.

**Is the average price used for capital gains tax?**
Not directly. For tax, shares are matched on a first-in, first-out (FIFO) basis, so the cost of the specific lots sold is used.

## Related calculators
- Capital Gains Tax Calculator: https://companystockprice.com/calculators/capital-gains-tax-calculator
- CAGR Calculator: https://companystockprice.com/calculators/cagr-calculator

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Results are estimates for planning only and are not financial, tax or investment advice.