Free tool
Average-Down Calculator
Find your new average price and P&L after buying more, and reverse-solve the shares to hit a target.
New average price
90
Total shares
20
Reverse: how many shares to hit a target average
Shares needed
10
Set the target below your current average, and the buy price below the target.
How the average price works
Your new average price is (existing cost + added cost) divided by total shares held. When you buy in several lots, sum every lot’s cost and divide by the combined share count.
Averaging down lowers your cost basis, but buying more without a reason can also deepen a loss. Declaring a direction on LDBD first means that call gets auto-scored on the close, leaving a record rather than a gut feeling.
Related terms
Prefer a record over a gut feeling?
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