Free Stock Market Average Calculator

How to Calculate Stock Average

Calculating your stock average is straightforward. Use the formula:

Stock Average=Total Cost of PurchasesTotal Number of Shares\text{Stock Average} = \frac{\text{Total Cost of Purchases}}{\text{Total Number of Shares}}Stock Average=Total Number of Shares Total Cost of Purchases​

This calculation requires summing up the cost of all your purchases and dividing it by the total number of shares you own. For a hassle-free calculation, you can use the Share Average Calculator.

Practical Example

Let’s illustrate stock averaging with an example. Suppose you purchased 200 shares of a stock at $40 per share and later bought another 100 shares at $50 per share. The total cost of your purchases would be:

200×40+100×50=8000+5000=13000200 \times 40 + 100 \times 50 = 8000 + 5000 = 13000200×40+100×50=8000+5000=13000

The total number of shares is:

200+100=300200 + 100 = 300200+100=300

Therefore, your stock average is:

13000300≈43.33\frac{13000}{300} \approx 43.3330013000​≈43.33

This means you paid, on average, $43.33 for each share.