How does stock averaging work?

When you buy the same stock at different prices, your average cost = total amount invested ÷ total quantity bought.

Should I average down on a falling stock?

Only if your conviction in the company is unchanged and the price drop is due to market noise — not a fundamental change. Otherwise, you may compound losses.

Does averaging change my P&L calculation?

Yes. Profit/loss is calculated against your average cost, not against any individual buy price.

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Stock Average Calculator

Find your effective average price across multiple buys.

Reviewed by Nisha SLast verified 6 Sept 2026RBI-compliantFact-check policy

Buy 1 Quantity10

010K

Buy 1 Price₹100

₹1₹1L

Buy 2 Quantity20

010K

Buy 2 Price₹80

₹1₹1L

Buy 3 Quantity30

010K

Buy 3 Price₹60

₹1₹1L

Total Quantity60 shares

Total Investment₹4,400

Average Price₹73

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About this calculator

Averaging down (or up) helps you compute effective entry price for staggered stock purchases.

Formula

Average = Total cost / Total shares

Frequently Asked Questions

Everything you need to know about the Stock Average Calculator.

Results are illustrative estimates for planning. Actual figures depend on bank/AMC terms, taxes and market conditions.