Scroll further down if you would like to see details as to how this calculator works and a description of it.
There is a new version of this calculator available here (mobile-friendly) that will make calculations at multiple price points at once (use the new interval field to specify how much in price you want to jump by). It will also let you know how low you can average down at the current share price.
Also, be sure to check out this free average down calculator template in Excel.
Average Down Calculator
|Shares Owned Today|
|Current Average Price|
|Current Share Price|
|Desired Average Price|
The purpose of this calculator
If you invest in stocks and want to know how much it would cost you to average down, this calculator will help you do just that. Averaging down is a great way to take advantage of a stock that’s dipped in value and that you’re confident won’t stay there. By purchasing more shares of a stock at a lower price, you’re bringing down the average cost of your total investment. And that means you’ll need the stock to rise to a lower price than before to turn a profit. Or if you’re already in the black, then you can put yourself in a great position to increase those profits.
How the average down calculator works
To use this calculator, you’ll need to enter the total dollars that you’ve invested in a stock, how many shares of it you own, what the current price of the stock is today (or the price that you plan to buy it at), as well as what price you want to average down to. Then, click on the Calculate button. The calculator will then tell you how many shares you’ll need to buy and how much it will cost you in order for you to get to that average.
Note that since you can’t average down below what the current share price is, you’ll have to make sure that your desired average price is higher than where the stock is today. Here is the calculator: