Stock Average & Weighted Share Price Calculator
Calculate weighted average cost per share across multiple dollar-cost averaging purchase tranches and compute target break-even stock exit prices.
Calculating Weighted Average Cost Basis for Dollar-Cost Averaging
When scaling into a position across multiple price levels, taking a simple mathematical average of buy prices produces incorrect cost basis figures if share quantities vary between orders. Accurate cost basis calculations require calculating the volume-weighted average price (VWAP) across all accumulated tranches.
The Weighted Average Share Price Formula
Weighted Average Price = (Tranche 1 Cost + Tranche 2 Cost + ... + Tranche N Cost) ÷ (Total Shares Tranche 1 + Total Shares Tranche 2 + ... + Total Shares Tranche N).
How to Use This Stock Average Calculator
Add up to 10 purchase tranches specifying share volume and purchase price for each buy-in. Enter current stock market price to view real-time unrealized PnL and exact break-even liquidation targets.
Frequently Asked Questions
Why is simple average share price incorrect for different buy sizes?
Simple averages treat 1 share bought at $100 equal to 1,000 shares bought at $50. Weighted averaging correctly accounts for total capital deployed at each price level.
Does dollar-cost averaging guarantee lower risk?
DCA reduces timing risk when accumulating long-term growth assets, but does not eliminate total market drawdown exposure.