Stock Average Down Calculator

Averaging down means buying additional shares of a stock you already own at a lower price than your original purchase. This lowers your overall average cost per share, reducing the price the stock needs to reach for you to break even or profit. For example, if you bought 10 shares at $50 and later buy 10 more at $40, your new average cost drops from $50 to $45 per share.

Average cost per share = Total amount invested / Total shares owned. For example, if you bought 10 shares at $50 ($500 total) and then 10 more shares at $40 ($400 total), your total investment is $900 across 20 shares, giving you an average cost of $45 per share.

Averaging down can be effective if the stock's fundamentals remain strong and the price decline is temporary. However, it increases your exposure to a single position, which adds risk. Always do thorough analysis before adding to a losing position. Consider using a scaling table to plan your entries at multiple price levels rather than going all-in at one price.

Dollar-cost averaging (DCA) involves investing a fixed dollar amount at regular intervals regardless of price, while averaging down specifically means buying more when the price drops below your average. Both strategies can reduce your average cost over time, but DCA is a systematic, emotion-free approach while averaging down is a more reactive strategy typically used when you believe a stock is temporarily undervalued.

Yes, this calculator works for any asset where you want to calculate a new average cost, including stocks, ETFs, cryptocurrencies like Bitcoin and Ethereum, and other investments. The math is the same regardless of the asset type.

A scaling table shows you how your average cost changes as you add different dollar amounts at a given buy price. It helps you plan your entries in advance. For example, you can see that investing $500 at $38 brings your average to $46, while investing $1,000 brings it to $43. This lets you set buy orders at multiple levels with a clear plan.