Share Average Down Calculator - Calculate Down Average Price

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Updated On: December 28, 2024

Share Average Down Calculator is a tool to calculate the average price of share bought at different time intervals at lower rates. This coded app can handle parallel calculation at a time. The manual calculations are usually time consuming and prone to errors. Using this tool can save time and output results having more accuracy.

Using Share Average Down Calculator

The share average buying calculator at down prices tool has simple and easy to operate. The step wise instructions for using this tool is as follow.

Step 1: Enter the Share quantity and price per share at which it was bought in the Down Purchase 1 and similarly in Down Purchase 2. You can add more Purchase Lot by pressing “Add More” button.

Step 2: After filling the inputs fields, press “Calculate” button to perform calculation.

Step 3: The result will be displayed below the form. The results will contain average price, total shares, price invested in each purchase and more.

Benefits of Share Average Down Calculator

Let us suppose, a person buys 10 units of Apple share at $170 each. After few days he found that stock price was decreasing. So, he bought additional 10 share at $165 each on 8th day. Since the price was decreasing continuously, he again buys 15 more shares at $160 each on 12th day. After a month the share price reached $172 each. What will be the share average down price?

Total Shares he owned = 10 + 10 (on 8th day) + 15 (on 12th day) = 35

Total amount invested = (10 x 170) + (10 x 165) + (15 x 160) = $5750

Share Average Down Price = 5750/35 = $164.28

Thus, the average down price after buying share at lower rate will be $164.28. The profit per share will be $5.72. The total profit from 35 units will be (5.72 x 35) = $200.2 (excluding charges & tax).

Average Down approach is most common practice among investors to minimize the risk of loss. When the market value rise above the mean value, the profit multiplies with the share quantity resulting in decent amount of profit.

Share Average Down Formula

Share average down is calculated by taking mean of each down purchase. The quantity and price per share are multiplied to obtain total investment of that purchase. Each purchase is then added and divided by total number of final shares of a particular company. Mathematically,

Share Average Down Formula = Total Buying Price/Total Number of Shares

Note: If additional charges and tax amount are applied during buying, then it should be added to Total Buying Price subsequently divided by Total Number of Shares to obtain Net Average Down Price. But usually, these charges are not applied during buying but may applied during stocks selling to obtain the actual profit.