Average Down Calculator
Stock & Crypto Average Price Calculator
See exactly how far your average cost drops, and how your return changes, before you buy the dip.
What this calculator does
Use this calculator when a stock or coin you own has dropped and you're thinking about buying more to lower your average cost.
Enter your current position and the buys you're planning, and you'll see your new average price, total cost, unrealized P/L and return at a glance. You can add several buys at different prices to plan a staged entry.
How to use it
- Current price: Enter the current market price. Your current return appears next to it right away.
- Current position: Enter your average cost and the quantity you hold, as shown in your brokerage or exchange account.
- Additional buy: Enter the price and quantity you plan to buy. Use "Add another buy" to plan several tranches.
- Results: Press "Calculate" to see your new average price, return, unrealized P/L and total cost.
- Start over: "Reset" clears every field. Your last three calculations are saved on this device automatically.
Examples
"I bought a stock at $180 and it's now $120. What happens if I average down?"
- Holding: 10 shares at $180 ($1,800) / Additional buy: 10 shares at $120 ($1,200)
- Total cost: $3,000 / Total quantity: 20 shares
- New average price: $150.00
- Return: -20.00% (vs. -33.33% before averaging down)
"I bought Bitcoin at $100,000 and it's fallen to $60,000. What if I buy more?"
- Holding: 0.1 BTC at $100,000 ($10,000) / Additional buy: 0.1 BTC at $60,000 ($6,000)
- Total cost: $16,000 / Total quantity: 0.2 BTC
- New average price: $80,000
- Return: -25.00% (vs. -40.00% before averaging down)
Average Down Calculator FAQ
Averaging down means buying more of a stock or coin after its price has fallen, which lowers your average cost per share.
Because your break-even price drops, a smaller rebound is enough to get back to even or into profit. The price no longer needs to return all the way to your original entry.
The trade-off is that more of your capital ends up concentrated in a single position, so it pays to run the numbers before you buy.
Because your break-even price drops, a smaller rebound is enough to get back to even or into profit. The price no longer needs to return all the way to your original entry.
The trade-off is that more of your capital ends up concentrated in a single position, so it pays to run the numbers before you buy.
It's a weighted average of everything you've paid:
Average price = (existing cost + cost of new buys) ÷ (existing quantity + new quantity)
For example, say you hold 10 shares bought at $180 ($1,800) and buy 10 more at $120 ($1,200). Your total cost is $3,000 for 20 shares, so your new average price is $150.
Average price = (existing cost + cost of new buys) ÷ (existing quantity + new quantity)
For example, say you hold 10 shares bought at $180 ($1,800) and buy 10 more at $120 ($1,200). Your total cost is $3,000 for 20 shares, so your new average price is $150.
It works best when the fundamentals are still intact and the drop comes from a market-wide sell-off or a temporary setback, not from a real problem with the business.
Rather than buying every dip, decide your price levels and budget in advance, then use this calculator to check how much each planned buy actually moves your average cost. Comparing your average after a first and second tranche is a simple way to keep risk under control.
Rather than buying every dip, decide your price levels and budget in advance, then use this calculator to check how much each planned buy actually moves your average cost. Comparing your average after a first and second tranche is a simple way to keep risk under control.
If the price keeps falling, every additional buy makes your total loss bigger. This is the classic "catching a falling knife" problem, and it's easy to slip into a sunk-cost trap where you keep adding just to defend an earlier decision.
Before buying, check that the total position still fits your overall portfolio and that you could afford to lose the extra capital. Averaging down on margin or with leverage adds the risk of margin calls and forced liquidation.
Before buying, check that the total position still fits your overall portfolio and that you could afford to lose the extra capital. Averaging down on margin or with leverage adds the risk of margin calls and forced liquidation.
Yes. Both modes accept decimals, so fractional shares work in Stocks mode.
The Crypto / Decimals mode shows prices and quantities with up to 8 decimal places and doesn't attach a currency symbol, so you can enter values in whatever your pair is quoted in: USD, USDT, EUR or anything else. The results come out in the same currency.
The Crypto / Decimals mode shows prices and quantities with up to 8 decimal places and doesn't attach a currency symbol, so you can enter values in whatever your pair is quoted in: USD, USDT, EUR or anything else. The results come out in the same currency.
No. The calculator only uses the prices and quantities you enter, so commissions, exchange fees and taxes are not included.
Many brokers include fees in the cost basis they display, so their number may differ slightly from yours. To include fees, add the fee divided by the quantity to your buy price. For example, a $5 fee on 10 shares bought at $120 means you'd enter $120.50.
Many brokers include fees in the cost basis they display, so their number may differ slightly from yours. To include fees, add the fee divided by the quantity to your buy price. For example, a $5 fee on 10 shares bought at $120 means you'd enter $120.50.
Dollar-cost averaging (DCA) means investing a fixed amount on a fixed schedule, such as every month, no matter what the price is. It spreads your entry over time.
Averaging down means buying specifically because the price has dropped below your cost, with the goal of lowering your average price. DCA is a long-term habit, while averaging down is a tactical decision that needs a plan and a limit.
Averaging down means buying specifically because the price has dropped below your cost, with the goal of lowering your average price. DCA is a long-term habit, while averaging down is a tactical decision that needs a plan and a limit.
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