Add each buy to get your blended average cost and break-even. Then plan exactly how much more to buy to reach a target average price.
| Buy price ($) | Quantity (shares) |
|---|
Plan an average-down buy
Nothing here is financial advice. Numbers are estimates and ignore trading fees and taxes unless you bake them into your buy prices.
How to average down (and when it makes sense)
Averaging down means buying more of a share after the price drops, which lowers your blended cost per share. It cuts the price your position needs to reach before you break even — but it also puts more money into a losing trade. It works when your original thesis still holds; it turns into "catching a falling knife" when you're buying only because the number is lower.
The average down formula
New average = (total money spent across all buys) ÷ (total shares held). For two buys: (P₁ × Q₁ + P₂ × Q₂) ÷ (Q₁ + Q₂). To hit a target average when buying at the current price, the shares you need are: (current avg − target) × current shares ÷ (target − current price). If the current price is above your target average, no amount of buying at that price will pull the average down to the target.
FAQ
What is a stock average down calculator?
It works out your blended average cost per share after multiple buys at different prices, and shows the break-even price your position needs to recover. This one also tells you how many shares to buy at the current price to reach a target average.
Average down vs DCA — what's the difference?
Dollar-cost averaging (DCA) is buying on a fixed schedule regardless of price, to smooth entry over time. Averaging down is a deliberate extra buy after a drop specifically to lower your cost basis. DCA is a plan; averaging down is a reaction.
How do I calculate my new average price?
Add up the total spent on every buy (price × quantity for each) and divide by the total number of shares. Enter each buy above and the calculator does it for you.
Does averaging down include fees?
Not by default. If you want fees reflected, add them into the buy price for each row (for example, use your all-in cost per share instead of the raw market price).
Is averaging down a good strategy?
Only if you still believe in the asset at the lower price. It reduces your break-even but increases your exposure to a position that's already down. It's risk management for a thesis you hold, not a fix for a bad trade.
More tools: all BullpenBrief calculators →