Question 1

How do I calculate average stock price?

Accepted Answer

Multiply each purchase price by the number of shares bought, add all the totals together, then divide by the total number of shares. This gives you the weighted average cost per share.

Question 2

What is cost basis?

Accepted Answer

Cost basis is the total amount you paid for all shares of a stock, including any commissions. It is used to calculate capital gains or losses when you sell.

Question 3

Why average down?

Accepted Answer

Averaging down means buying more shares at a lower price, which reduces your average cost per share. This strategy can help you break even faster if the stock recovers.

Question 4

Is this tool free and private?

Accepted Answer

Yes, this calculator is 100% free and runs entirely in your browser. No data is sent to any server.