What is a Stock Average Calculator?

Stock Average Calculator is an easy tool for estimating the average price of a stock based on multiple purchases made at different times and prices. It’s beneficial for investors who regularly buy a particular stock at various prices over time and want to determine their average cost per share.


Why Stock Average Calculator?

● It makes it easier for investors to track the average price at which they buy a stock.
● It specifies the overall performance of an investment and provides insights into that performance.
● It contributes to making well-informed decisions regarding the purchase or sale of stocks.

How Does Stock Average Calculator Work?

● Input the number of shares purchased.
● Input the price per share for each purchase.
● This tool will multiply the number of shares by the price per share for each purchase and then sum up these values.
● After that, the total price will be divided by the number of shares acquired to get the average price per share.


Formula to calculate the stock average

Stock Average =(Total Cost of Shares Purchased)/( Total Number of Shares Purchased)

For example, if you bought 100 shares of a stock at $10 per share and later bought another 50 shares at $15 per share, the Stock Average Calculator would compute the average price per share as:

Stock Average = ((100×10)+(50×15) )/(100 +50)
= (1000 + 750 )/150
= (1750 )/150
=11.67

The average price per share would be $11.67. This can help you assess whether the current market price is above or below your average cost, aiding investment decisions.