# What is my stock average price?

Computes the weighted average price per share, the total shares, and the total cost of several purchases of the same stock.

- Page: https://www.acalculator.org/finance/stock-average-calculator
- JSON spec: https://www.acalculator.org/finance/stock-average-calculator.json
- Version: 30fd80664802

## Default answer

Example with the default inputs (Your purchases [100, 50; 50, 60]): Buying 150 shares for $8,000.00 in total is an average of $53.33 per share.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| buys | Your purchases | One row per purchase: the number of shares, then the price paid per share. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| average | Average price per share | The total cost divided by the total shares. |
| totalShares | Total shares | All the shares bought, added up. |
| totalCost | Total cost | Each purchase’s shares × price, added up. |
| purchases | Purchases | How many purchases have more than 0 shares. |

## Method

Average price = Σ(shares × price) ÷ Σ shares.

## Assumptions

- Each row is one purchase: shares in the first column, price per share in the second.
- Fees and commissions are not included unless you add them to the price.
- Sales are not counted; enter only purchases.

## Worked examples

1. buys = 100 or 50 or 50 or 60 gives average = $53.33, totalShares = 150, totalCost = $8,000.00. Source: Internal Revenue Service, Publication 550, Investment Income and Expenses: basis of stock bought at different times and the average basis method. https://www.irs.gov/publications/p550.
2. buys = 50 or 12.5 or 25 or 15 gives average = $11.31, totalShares = 175, totalCost = $1,980.00. Source: Internal Revenue Service, Publication 550, Investment Income and Expenses: basis of stock bought at different times and the average basis method. https://www.irs.gov/publications/p550.
3. buys = 10 or 0 or 10 or 50 gives average = $25.00, totalCost = $500.00. Source: Internal Revenue Service, Publication 550, Investment Income and Expenses: basis of stock bought at different times and the average basis method. https://www.irs.gov/publications/p550.
4. buys = 0.5 or 30,000 or 0.25 or 40,000 gives average = $33,333.33, totalShares = 0.75. Source: Internal Revenue Service, Publication 550, Investment Income and Expenses: basis of stock bought at different times and the average basis method. https://www.irs.gov/publications/p550.

## FAQ

### What is a stock average calculator?

A stock average calculator helps you determine the average price per share when you've made multiple purchases of the same stock at different prices. This is useful for understanding your overall investment position and calculating your cost basis.

### How is the average price calculated?

The average price is calculated by dividing the total amount invested by the total number of shares purchased. Formula: Average Price = Total Investment ÷ Total Units.

### Why is knowing my average price important?

Knowing your average price helps you understand your break-even point, evaluate your investment performance, and make informed decisions about buying more shares or selling existing positions.

### What is a share average calculator and how does it work?

A share average calculator (also known as a stock average calculator) is a tool that calculates the weighted average price of shares when you've bought the same stock multiple times at different prices. It helps investors track their cost basis and understand their overall investment position across multiple purchases.

### How do I calculate the average price of my stock shares?

To calculate the average price of your stock shares, multiply each purchase by its price, add all the totals together, then divide by the total number of shares. For example: (100 shares × $50) + (50 shares × $60) = $8,000 total ÷ 150 shares = $53.33 average price per share.

### What is the difference between stock average and share average?

Stock average and share average refer to the same concept - the weighted average price of shares you've purchased. Both terms describe calculating your cost basis when you've bought the same stock multiple times at different prices. The calculator works for any stock or investment where you need to track multiple purchases.

### Can I add more than 20 purchases?

The calculator supports up to 20 separate purchases. If you need to track more purchases, you can combine purchases at the same price into one, or use a spreadsheet for more detailed tracking.

### What if I have zero shares or zero price?

A purchase with zero shares adds nothing. A purchase at a price of zero (for example free shares) adds shares but no cost, so it lowers the average. If the total number of shares is zero, there is no average price, and the calculator asks for at least one purchase.

### How does dollar cost averaging relate to share average calculation?

Dollar cost averaging is an investment strategy where you invest a fixed amount regularly, regardless of share price. The share average calculator helps you track the results of this strategy by showing your average price per share across all purchases. This helps you understand whether your dollar cost averaging strategy is working effectively.

### Why should I use a share average calculator for my investments?

Using a share average calculator helps you make informed investment decisions by showing your true cost basis. It's essential for tax purposes, understanding your break-even point, evaluating investment performance, and deciding when to buy more shares or sell existing positions. It's particularly useful for long-term investors who make multiple purchases of the same stock.

## Sources

- Internal Revenue Service, Publication 550, Investment Income and Expenses: basis of stock bought at different times and the average basis method. https://www.irs.gov/publications/p550
- Weighted arithmetic mean: NIST/SEMATECH e-Handbook of Statistical Methods. https://www.itl.nist.gov/div898/handbook/