Average Down Calculator

What this number really means

Averaging down means buying more of a stock you already own after its price has fallen, so your average cost per share drops. Own 100 shares at a $120 average, watch the price fall to $80, buy 50 more, and your new average is $106.67 — the stock now has a shorter climb back to your break-even.

The math is a blend, weighted by shares. Your new average always lands between your old average and the price you just paid, closer to whichever side holds more shares. Buy a little and it barely moves; buy a lot and it hugs the new price — but it can approach that price, never cross it. That one fact runs the whole calculator.

The target solver runs the blend backwards, and the answer surprises most people. Pulling a $120 average down to $100 by buying at $80 takes 100 more shares — $8,000 — on top of a $12,000 position. A prettier average is never free; it is bought with a bigger position.

One warning before you reach for it. A lower average only helps if the business is still sound — a falling price is sometimes the market noticing real trouble, and adding shares then just makes the loss bigger. Check the total dollars you would have in one name when you're done, not just the nicer average. This page does the arithmetic; the judgment stays yours.