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Average Down Price Calculator

Work out average down price instantly with clear inputs, formula shown and shareable results.

About Average Down Price Calculator

Averaging down buys more at a lower price, pulling the weighted average cost down. It reduces the recovery needed to break even, but it also increases the position in a falling holding — which is why it requires conviction in the underlying, not just the price.

Formula

Weighted average cost

Average = (q₁p₁ + q₂p₂) / (q₁ + q₂)

Worked example

With the default values below, Average Down Price Calculator returns New Average Cost of $440.0000. Change any input above and every figure here is recalculated in your browser.

Inputs used

First Purchase Quantityaccepts 1–10,000,000
100
First Purchase Priceminimum 0
500
Second Purchase Quantityaccepts 1–10,000,000
150
Second Purchase Priceminimum 0
400

Results

New Average Cost
$440.0000
Total Quantity Held
250
Total Amount Invested
$110,000.00
Gain From The Current Price To Break Even
10.000%

Step by step

  1. 1Values used
  2. 2Weighted average cost
  3. 3New Average Cost= 440.0000
  4. 4Total Quantity Held= 250
  5. 5Total Amount Invested= 110,000.00
  6. 6Gain From The Current Price To Break Even= 10.000

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Market returns are not guaranteed, and rates, limits and tax rules change. This is not financial or tax advice — speak to a qualified adviser before acting.

Frequently Asked Questions

Is averaging down always sensible?

Only if the original thesis still holds. Adding to a broken position is how small losses become large ones.

How does it differ from a SIP?

A SIP averages mechanically across a whole market. Averaging down is a discretionary bet on one holding.

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Average Down Price Calculator – Calculate New Average Cost