Stock Average Calculator

A stock average calculator is an online tool that helps investors compute the average cost per share of a stock position built across multiple purchase transactions at different prices — providing the weighted average acquisition cost used to calculate unrealised profit or loss on the position and to determine the capital gains tax basis upon eventual sale. The calculation is: Average Price = Total Amount Invested ÷ Total Shares Purchased. For example, buying 100 shares at ₹500 and another 200 shares at ₹450 gives an average cost of (₹50,000 + ₹90,000) ÷ 300 = ₹466.67 per share. The stock average calculator is widely used by Indian equity investors who practise averaging down — purchasing additional shares when a stock's price falls below the original entry price to lower the average cost. While averaging down can be a rational strategy for fundamentally sound stocks, it is dangerous for deteriorating businesses — the calculator helps investors precisely track how much further the price must recover for the position to break even. For tax purposes, SEBI-mandated First-In First-Out (FIFO) accounting determines which specific lots are considered sold, making the average cost calculator a useful planning tool even though FIFO governs actual tax computation in India.