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Average Down Calculator
The stock dropped and you are buying more. See your new average cost.
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Buy this many more
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New average cost
$40
Buying 100 more at $30 drops your average from $50 to $40.
New cost
$8,000
Break-even
$40
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How this is calculated
We add the shares you are buying to what you already own, add the money you spend to what you already invested, then divide.
new avg = (own x avg + added x price) / total shares. That blended number is also your break-even price.A lower average feels good. Whether the thesis still holds is the real question.
Get the honest read on OpenTradeEstimate based on your inputs. Not financial advice. A lower average cost lowers your break-even, but not your risk.
How averaging down works
Averaging down means buying more of a stock you already own after the price has fallen. The cheaper shares pull your blended average cost down, which lowers the price the stock needs to reach for you to break even.
- Multiply your shares owned by your current average to get what you have already put in.
- Multiply your additional shares by the new price and add it to the total money invested.
- Divide the total invested by your total shares. That is your new average cost, and it is also your break-even price.
Is averaging down a good idea?
Only if the reason you bought in the first place still holds. When the drop is noise and the business is intact, adding at a lower price is buying the same thing on sale. When the drop is the market repricing something real, averaging down is throwing good money after bad and quietly doubling your exposure to a position already going against you. The math always lowers your average. It says nothing about whether the stock recovers.
What is my break-even after averaging down?
Your break-even is simply your new average cost per share. Once you have averaged down, the stock only needs to climb back to that blended number for your whole position to be even, rather than all the way back to your original entry. That lower bar is the appeal, but it comes with more shares and more dollars on the line if the price keeps falling.