Stock Average Calculator

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Strategy Guide

Why & When to Average Down?

Averaging Down is the practice of purchasing additional shares of an equity as its market price declines, reducing your overall cost basis per share and lowering your break-even hurdle.

1. Find Effective Average (Multiple Tranches)

Enter all your historical buy orders with individual prices and quantities to calculate your weighted average purchase price and total invested capital.

2. Target Averaging (Exact Qty Needed)

If you bought high (e.g. ₹1,000) and the stock is at ₹700, enter your target price (e.g. ₹800) to know the exact number of shares to accumulate at CMP.

Practical Examples

Common Scenarios

Scenario A: Averaging Down on Dips

You bought 100 shares of Tata Motors at ₹500. The price drops to ₹400. Buying 100 more shares at ₹400 immediately drops your average to ₹450 (10% lower break-even).

Scenario B: Target Planning for Recovery

You hold 50 shares of HDFC Bank at ₹2,000 (Invested ₹1,00,000). Current market price is ₹1,500. To bring your average down to ₹1,700, the tool calculates you need 75 additional shares.

💡 Golden Rule Before Averaging Down

Only average down in fundamentally strong compounders with healthy balance sheets and zero debt distress. Never average down on dying businesses or penny stocks.