Average price formula
Worked example
You buy 10 shares at ₹1,500 and 15 at ₹1,200. You paid ₹33,000 for 25 shares, so your average is ₹1,320.00. To bring the average down to ₹1,300 by buying at ₹1,250, you need 10 more shares.
Averaging down: think first
Buying more of a falling share lowers your average, but it also raises how much you have in one company. Average down only when your reasons for owning the share still hold, not just to make a loss look smaller.
Frequently asked questions
How do I calculate my average share price?
Add up the total amount paid for all buys and divide by the total number of shares.
Do charges change my average price?
Strictly, yes. Add brokerage and taxes to each buy’s amount for an exact cost basis.
Why does the target average say it is out of reach?
Buying at the current price can only pull your average towards that price. A target below the current price, or above your current average, cannot be reached by buying more.
How many buys can I add?
As many as you like. Tap “Add another buy”.