Financial
Stock Average Calculator
Stock Average Calculator
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Total Shares:
Average Cost:
This Stock Average Calculator can help you calculate the average price and total shares of your stocks when you bought the same company stock multiple times at different prices. Lets say you buy a company stock, then the price of that stock goes lower and you buy that same stock again at the lower price, this is known as averaging down.
So this Average Down Calculator can help you determine that average price.
How to calculate the average stock price?
We used this formula to determine the cost basis:
Cost Basis = (P1 * S1 + P2 * S2 + ... + Pi * Si) / N
N = S1 + S2 + ... + Si — Total number of shares bought
S1 — Number of shares 1st buy
P1 — Shares purchase price 1st buy
S2 — Number of shares 2nd buy
P2 — Shares purchase price 2nd buy
Si — Number of shares last buy
Pi — Shares purchase price last buy
Example:
Let's say you bought stocks of Coca-Cola (KO) at these dates
| Symbol | Dates | Shares | Prices |
|---|---|---|---|
| KO | 11/09/2020 | 546 | $38.32 |
| KO | 11/11/2020 | 50 | $40.68 |
| KO | 12/05/2020 | 218 | $33.16 |
| KO | 01/22/2021 | 50 | $45.73 |
| KO | 03/14/2021 | 20 | $56.22 |
| KO | 06/20/2021 | 400 | $38.05 |
Since you bought the stocks at different prices and different amount of shares, it can get confusing to know what's your average price. But if you use this easy formula, calculating the average price is easy.
Step 1: Calculate Total Shares
N: 546 + 50 + 218 + 50 + 20 + 400 = 1284 Total Shares
Step 2: Calculate the cost by multiplying the each price and shares, then add them all together
Cost Basis: (38.32 * 546) + (40.68 * 50) + (33.16 * 218) + (45.73 * 50) + (56.22 * 20) + (38.05 * 400) = Total Cost
Cost Basis: 20,922.72 + 2,034 + 7,228.88 + 2,286.50 + 1,124.40 + 15,220 = Total Cost
Cost Basis: $48,816.50 Total Cost
Step 3: Divide the total cost by the total shares
48,816.50 / 1284
Answer:
Total Shares: 1284
Average Cost: $38.019
