LabsAveraging Down

Averaging Down Calculator

Stock fell after you bought. How many shares to buy at current price to bring your average to a target?

Analysis tool — not investment advice. Results are estimates for educational purposes only and do not constitute a recommendation to buy, sell, or hold any security. Past performance is not indicative of future results. For personalised advice, consult a SEBI-registered investment advisor.

Who this is for

Stock or MF investors who bought at a higher price and are considering buying more after a fall. The math tells you exactly how many shares to buy — but the decision to buy at all should still be based on fundamentals, not just to lower the average.

Averaging down

Buying more of a stock/fund after its price has fallen, to reduce your average cost per share. It works if the price eventually recovers — but amplifies losses if it keeps falling.

Average cost / VWAP

Your total invested amount divided by total shares held. If you bought 10 shares at ₹500 and 10 more at ₹300, your average is ₹400 — the break-even price for the combined position.

Break-even price

The price at which your total position goes from a loss to a profit. After averaging down, your break-even drops — you need less recovery to get back to zero.

Your Current Position

Weighted average of all your purchases

What You Want

Price at which you'd buy more

The average you want to achieve after buying more

Before averaging down: Only buy more if you still believe in the fundamentals. Averaging down on a broken business turns a bad trade into a wipeout. Have a clear stop-loss in mind.

Buy this many shares

72

at ₹380 = ₹27,360 additional investment

New average price

₹449.77

Down from ₹500

Total shares

172

+72 new

Total invested

₹77,360

incl. previous purchases

Current unrealised loss

-24.00%

on original avg price

Recovery required

To break even on new average (₹449.77)+18.36%
To break even on original avg (₹500) without buying more+31.58%
Averaging down reduces your break-even by 13.22%