Averaging Down Calculator

Formula Guide

Multiply current shares by the current average cost, add the value of the new buy, and divide by total shares after the buy.

How to Read the Result

A lower blended cost means the recovery price gets lower. That part is simple. What matters next is whether the drop is big enough to justify tying up more capital in the same holding.

What’s Not Included

Broker commissions, taxes, currency conversion costs, corporate actions, and partial fills or slippage.

Price below cost basis

When the market price is below your current average cost.

Compare add-on sizes

When you want to compare several possible add-on buy sizes.

Estimate cash required

When you want to know how much capital is needed to lower break-even.

Single buy vs staged entries

When you want to compare a single large buy with staged entries.

Recovering from a drawdown after a lower re-entry

You bought a stock earlier, price dropped, and you want to test whether one more buy meaningfully lowers the recovery threshold.

Use this setup to see whether the new blended cost drops enough to justify adding more capital. If the break-even change is small, the added exposure may not be worth it.

Comparing one larger buy versus several smaller buys

You are unsure whether to add all at once or stage the entries over several lower price levels.

Run the page multiple times with different buy sizes and prices. The comparison tells you how much extra improvement comes from waiting for a lower entry instead of buying immediately.