Is averaging down a good idea?

Stock average calculator

Average buy price across multiple purchases.

Your purchases

1
₹
qty
2
₹
qty

Current market price

₹

Average buy price

₹266.67

300 shares

Total quantity: 300
Total cost: ₹80,000
Value at current price: ₹78,000
Unrealised profit or loss: −₹2,000

Averaging down lowers your average price, but it also increases how much you have in one stock. Ask whether you would buy it fresh at today's price before adding more.

What this calculates

When you buy the same stock more than once at different prices, your cost is the quantity-weighted average price.

How it's calculated

Average price = Σ(price × quantity) ÷ Σ(quantity)

Results are illustrations based on the inputs you choose. Returns are not guaranteed and actual outcomes will vary. This is education, not advice.

Questions about this tool

Only if the reason you bought still holds. Averaging down on a deteriorating business increases your exposure to it.