Average Down Calculator

    Enter the number of shares and price per share for the first purchase and second purchase. Also, use the Dividend Calculator to forecast your dividend income and ROI.

    1st Purchase

    2nd Purchase

    Unfortunately, sometimes stocks we love go down...alot.

    Before you sell, ask yourself if you still love the company.

    If the answer is yes, you may want to average down.

    By averaging down, you can purchase more shares which lowers your cost basis.

    By lowering your cost basis, if and/or when the stock price recovers, you be glad you averaged down!

    1st Purchase: $5,000.00
    [100 Shares X $50.00]
    2nd Purchase: $1,000.00
    [100 Shares X $10.00]
    Total Shares: 200 Shares
    [100 Shares + 100 Shares]
    Total Cost: $6,000
    [$5,000.00 + $1,000.00]
    New Cost Basis: $30.00
    [$6,000.00 / 200 Shares]

    This changes the original cost basis from $50.00 to $30.00 which is a difference $20.00 or 40.00%.
    If the stock price recovers to the 1st purchase price of $50, the total value of the investment will be $10,000 from an investment of $6,000.

    This would be a gain of 4,000 or 66.67%.