Stock CalculatorStock Calculator

Stock Average Calculator

Calculate your stock average cost and optimize your investment strategy

How to use:

  1. 1Enter your initial purchase price and quantity
  2. 2Add subsequent purchases with their respective prices and quantities
  3. 3View your average cost basis and total investment
  4. 4Analyze the impact of additional purchases on your average cost
  5. 5Click on the 'Calculate' button to update results

Calculation Parameters

Shares BoughtPurchase Price ($)

Results

Total Shares

300

Total Investment

$3,000.00

Average Cost

$10.00

Average Cost Formula

The stock average cost (or cost basis) is calculated by dividing the total investment amount by the total number of shares. This helps investors track their actual cost per share across multiple purchases.

Average Cost Formula:

Average Cost=∑(Purchase Price×Quantity)∑Quantity\text{Average Cost} = \frac{\sum(\text{Purchase Price} \times \text{Quantity})}{\sum \text{Quantity}}

Where:

  • • Purchase Price = Price per share for each transaction
  • • Quantity = Number of shares in each transaction
  • • Σ = Sum of all transactions

Example:

Consider the following purchases:

Purchase 1:100 shares at  50 eachPurchase 2:50 shares at  45 eachPurchase 3:150 shares at  40 each\begin{align*} \text{Purchase 1} &: 100 \text{ shares at } \ 50 \text{ each} \\ \text{Purchase 2} &: 50 \text{ shares at } \ 45 \text{ each} \\ \text{Purchase 3} &: 150 \text{ shares at } \ 40 \text{ each} \end{align*}

Calculation Process:

Total Investment=(100× 50)+(50× 45)+(150× 40)= 5,000+ 2,250+ 6,000= 13,250\begin{align*} \text{Total Investment} &= (100 \times \ 50) + (50 \times \ 45) + (150 \times \ 40) \\ &= \ 5,000 + \ 2,250 + \ 6,000 \\ &= \ 13,250 \end{align*}
Total Shares=100+50+150=300 sharesAverage Cost= 13,250300= 44.17 per share\begin{align*} \text{Total Shares} &= 100 + 50 + 150 = 300 \text{ shares} \\ \text{Average Cost} &= \frac{\ 13,250}{300} = \ 44.17 \text{ per share} \end{align*}

In this example, although the purchase prices varied from $40 to $50, the average cost per share is $44.17. This average cost basis helps investors track their overall position and calculate potential gains or losses.