logo

Download the App Now!

raise
raise
Home
CalculatorsStock Average Calculator
Career

Stock Average Calculator

Buying the same stock at different prices? Quickly calculate the average price of your stock investments with our easy-to-use Stock Average Calculator.
1st Purchase
Buy Price
Quantity
2nd Purchase
Buy Price
Quantity
Total Quantity
0
Average Price
₹ 0.00
Total Value
₹ 0.00
The stock average price is the total amount spent on buying shares divided by the number of shares owned. This helps investors know the real cost of their holdings.
A stock average calculator simplifies this process by tracking multiple stock purchases of a company, making it easy to see the average purchase price. Here we will explain how a “stock average calculator” works, and how you can use it as an effective means for managing your investments more efficiently.

How the Stock Average Calculator Works?

A Stock Average Calculator is a crucial instrument for both investors and traders. It assists in determining the mean price of a stock when it has been purchased at various prices over a certain duration. This calculator proves to be particularly beneficial when you opt for Systematic Investment Plans (SIP) in stocks or when you acquire multiple shares of a company over a specified period.

Here’s how it works:
  • Input Data: Start by opening the Dhan Yearly SIP Calculator online.
  • Calculate Total Cost: For each purchase, the calculator multiplies the number of shares by the price per share in order to find out the total cost of that particular purchase. It then sums up all these costs to get the overall total cost of all purchases.
  • Calculate Total Shares: The calculator adds up all shares bought in different purchases.
  • Calculate Average Cost: The calculator takes the total cost divided by the total number of shares traded to get the average cost per share.
The formula for the average cost per share is:
Average Cost per Share = Total Shares/Total Cost
This average cost per share is also called a cost basis which is useful in determining gains or losses when selling a stock and also for tax purposes. This process becomes simple and quick via the Stock Average Calculator and gives investors an easy way to know their average cost per stock.
Remember that, average cost per share does not mean you would sell your stock at that amount – it only reflects an average buy price regarding your investment in the security. The selling price would depend on market conditions at any given time.

Example of Stock Average Calculator

Here are a few scenarios to illustrate how a Stock Average Calculator works:
Scenario 1: Buying More at a Lower Price
Suppose you bought 100 shares of a company at ₹500 each. Later, the price dropped and you decided to buy 200 more shares at ₹400 each. The average cost per share will be calculated as follows:
Average Cost per Share = (100 * 500 + 200 * 400) / (100 + 200) = 433.33
So, even though you bought some shares at ₹500 and some at ₹400, your average cost is ₹433.33 per share.
Scenario 2: Buying More at a Higher Price
Now, suppose you bought 100 shares at ₹500 each. This time, the price increased and you bought 200 more shares, but at ₹600 each. The average cost per share will be as follows:
Average Cost per Share = (100 * 500 + 200 * 600) / (100 + 200) = 566.67
In this case, your average cost is ₹566.67 per share, which is higher than both of your purchase prices.
Scenario 3: Buying Equal Amounts at Different Prices
Finally, suppose you bought 100 shares at ₹500, then another 100 shares at ₹600. The average cost per share will be as follows:
Average Cost per Share = (100 * 500 + 100 * 600) / (100 + 100) = 550
In this scenario, your average cost is exactly between your two purchase prices.
These examples illustrate how the average cost of your shares can change depending on the price and quantity of your purchases. It’s a useful tool for investors to understand their investment performance.
Benefits of Using the Stock Average Calculator
Using a Stock Average Calculator has several benefits for investors:
1. Simplifies Calculations
When you invest in the same stock multiple times at different prices, calculating the average cost per share can become complex.
This tool automates that process, requiring only the number of shares and the price per share for each purchase as input. It then performs the necessary calculations to provide you with your average cost per share.
This not only saves time but also reduces the chances of errors that might occur with manual calculations.
2. Informed Decision Making
The Stock Average Calculator aids in informed decision-making. By providing the average cost per share, it gives you a benchmark to compare with the current market price of the stock.
If the market price is higher than your average cost, you may sell the stock and realize your profits.
On the other hand, if the market price is lower than your average cost, you might choose to hold onto your stock, anticipating that the price will rise in the future. This information can be crucial in strategizing your investment decisions and optimizing your returns.
3. Tax Purposes
The Stock Average Calculator is important for tax purposes. When you sell your stock, you are required to report your capital gains or losses to the tax authorities. These are calculated as the difference between your selling price and your average cost per share.
By providing you with the average cost per share, the Stock Average Calculator makes it easier to calculate your capital gains or losses. This can simplify your tax reporting process and help ensure that you’re complying with tax regulations.
It’s a valuable tool for maintaining accurate and up-to-date tax records.
4. Rupee-Cost Averaging
Rupee-cost averaging is an investment strategy where a fixed amount of money is invested in a particular asset at regular intervals, regardless of its price. This approach allows investors to buy more shares when prices are low and fewer shares when prices are high, leading to a lower average cost per share over time.
A Stock Average Calculator can be instrumental in tracking this average cost, helping investors assess their investment’s performance against market fluctuations.
This strategy can potentially reduce the impact of volatility and lower the risk of investing a large amount in a single investment at the wrong time.
5. Performance Tracking
Performance Tracking is a crucial aspect of investing. By comparing the current market price of your stocks with the average cost (the average price at which you purchased the stocks), you can monitor the performance of your investments.
This comparison gives you a clear picture of whether your stocks are performing well (current price is higher than the average cost) or underperforming (current price is lower than the average cost).
A Stock Average Calculator can help you in this process by providing the average cost of your stocks. This information can guide you in making informed decisions about holding, selling, or buying more stocks.

Conclusion

A stock average calculator is a valuable tool for investors. It helps you keep track of the average price of your stock purchases, making it easier to decide when to buy, hold, or sell.
This tool allows you to manage your investments more effectively and make smarter financial decisions. Start using the Dhan stock average calculator today to stay on top of your investment game.


Frequently Asked Questions

A stock average calculator is a tool that computes the average price at which you've purchased shares of a company, simplifying investment analysis and decision-making.

To find the average cost, add up the total amount you've paid for the shares and then divide by the number of shares you've bought. You can also simply use the Dhan Stock Price Calculator to avoid the hassle of complex calculations.

Knowing the average purchase price is crucial as it helps investors determine if their stock is underperforming or overperforming based on current market prices.

Absolutely! Regardless of when or at what price you bought your stocks, you can use this calculator to determine the overall average cost of your investments.

By providing insights into your average investment costs, this calculator helps in strategizing buy or sell decisions, thereby enhancing your financial planning and portfolio management.




img

Invest & Trade with a Trading
Platform That's icon

Open your Dhan Account in minutes!


mob
logo

Join us on

community logo

Follow us on

twitter
telegram
Linkedin
youtube
instagram
facebook

built with love
for Indians who love to invest & trade

raise

We are part of Raise Financial Services

raise
raise

Explore  |  Sitemap


*All securities mentioned on this website are exemplary and not recommendatory.

We are bullish on India, we are bullish on India's prospects to be one of the largest economies in the world. We believe that the stock market provides a unique opportunity for all of India's traders and investors to participate in the growth story of the country.

Yet, most investing & trading platforms in India have remained more or less the same over the past decade. Times have changed and retail traders and investors have become smarter about managing their trades and money. Modern traders & investors require an online trading platform that helps them keep up with the technological advancements of our time.

That's why we're building Dhan - to help you trade, to help you invest, and to help you participate in India's growth stock via the stock market with awesome features and an incredible experience.

We are doing so by giving you access to not just one but 6 products within the Dhan ecosystem:


This means that with Dhan, you'll be able to start:


Lakhs of users already trust Dhan for their online stock trading and investing needs. Dhan is growing rapidly because of the love we receive from SuperTraders and Long-Term Investors who acknowledge that the platform is innovating for them, building super useful features that help them do everything from investing in stock market to trading F&O like a pro on the Tradingview charts and much more.

While we are growing, we will always remember why we started building in the first place - you. Our user-first approach will always be at the heart of our philosophy. Come join us on this incredible journey!

Try it out, you can close your account at anytime using this link.

©2021-2024 Moneylicious Securities Private Limited. All rights reserved. CIN - U74999WB2012PTC184187 Moneylicious Securities is part of Raise Financial Services.

SEBI Stock Broker Registration No: INZ000006031 | Depository Participant (CDSL) ID: IN-DP-289-2016
Exchange Membership No. : NSE: 90133 | BSE: 6593 | MCX: 56320
Registered Office: Office No. 14D, 4th Floor, Shri Krishna Chambers, 78, Bentick Street, Kolkata - 700001, West Bengal, India.
Corporate Office: A-302, The Western Edge I, Off Western Express Highway, Borivali East, Mumbai - 400066, Maharashtra, India. Customer Care: 9987761000.

Details of client bank account

For any query / feedback / clarifications, email at help@dhan.co.

In case of grievances for any of the services rendered by Moneylicious Securities Private Limited, please write to grievance@dhan.co (for NSE, BSE and MCX) or grievancedp@dhan.co (for Depository Participant). Please ensure that you carefully read the Risk Disclosure Document as prescribed by SEBI, our Terms of Use and Privacy Policy. Compliance Officer: Mr. Manish Garg and Mobile: 8655740961 Email: complianceofficer@dhan.co To lodge your complaints using SEBI SCORES, click here.


DHAN is a brand owned by Moneylicious Securities Private Limited. All DHAN clients are registered under Moneylicious Securities Private Limited. Clients are advised to refer to our company as Moneylicious Securities Private Limited when communicating with regulatory authorities.


Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances


Disclaimer: Investment in the securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed the SEBI prescribed limit


Attention investors:

  1. Stock brokers can accept securities as margins from clients only by way of pledge in the depository system w.e.f September 01, 2020.
  2. Update your e-mail and phone number with your stock broker / depository participant and receive OTP directly from depository on your e-mail and/or mobile number to create pledge.
  3. Check your securities / MF / bonds in the consolidated account statement issued by NSDL/CDSL every month.

Note: As a policy we do not give stock tips or recommendations and have not authorized anyone to give this on behalf of us. If you know anyone claiming to be a part of Dhan / Moneylicious / Raise or our associate companies or partners and offering such services, please report us on help@dhan.co. Important Information for Investors: To prevent unauthorized transactions in your trading / demat account, do not share your account details, credentials or any personal details with anyone. Keep your mobile number updated with your Stock Broker, Depository Participant and ensure that the same is registered with Stock Exchanges, Depository and KRAs. You will receive alerts and information on your registered mobile number / email for debit and other important transactions in your demat account directly from CDSL / Exchange on the same day. KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (Stock Broker, DP, Mutual Fund, etc.), you need not undergo the same process again when you approach another intermediary. No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account. This is issued in the interest of investors.


Moneylicious Securities Private Limited also known as Dhan is only an order collection platform that collects orders on behalf of clients and places them on BSE StarMF for execution. Client expressly agrees that Dhan is not liable or responsible and does not represent or warrant any damages regarding non- execution of orders or any incorrect execution of orders with regard to the funds chosen by the client or due to, but not being limited to, any link/system failure, delay in transfer of the funds on account of any unforeseen circumstances/issues in the banking system/payment aggregators or any other problems that may result in a delay in crediting the funds into the BSE Star MF's bank account.


Mutual fund investments are subject to market risks, read all scheme related documents carefully before investing. Dhan is not a distributor or agent of any mutual fund. Mutual Funds are not exchange-traded products. Any related disputes will not have access to the Exchange-investor redressal forum or arbitration mechanism. For other disclaimers please refer https://dhan.co/advertisement-disclaimer/


Download client registration documents (Rights & Obligations, Risk Disclosure Document, Do's & Don'ts) in vernacular language: BSE | NSE | MCX


Kindly, read the Advisory Guidelines of BSE | NSE | MCX for investors as prescribed by the exchange with reference to their circular dated 27th August, 2021 regarding investor awareness and safeguarding client's assets


Important Links: SEBI | BSE | NSE | MCX | CDSL | SCORES | ODR Portal | Investor Charter for Stock Brokers | Investor Charter for DP | UCC Advisory | e-Voting for Shareholders | NCL Client Collateral details |
MCXCCL Client Collateral details

Important Information: Terms of Usage | Disclaimers | Privacy Policy | Grievances | Risk Management Policy | Risk Disclosure | Advertisement Disclaimer | Saarthi 2.0 Mobile App for Investors