Stock average calculator
Purchase 1
Purchase 2
Average price
₹466.67a share
150 shares for ₹70,000.
Stock average: basics and FAQs
What is a stock average?
A stock average is the average price paid per share across all the purchases of the same share. It is also called the share average or the average cost.
How is it worked out?
Multiply the shares in each purchase by the price paid for them, add the amounts up, and divide by the total number of shares:
Average price = (Q₁ × P₁ + Q₂ × P₂ + …) ÷ (Q₁ + Q₂ + …)
Q = shares in a purchase
P = price per share in that purchase
Worked example: 100 shares at ₹500 and 50 shares at ₹400. That is (100 × ₹500 + 50 × ₹400) ÷ (100 + 50) = ₹70,000 ÷ 150 = ₹466.67 a share.
Why is it not halfway between the two prices?
Halfway between ₹400 and ₹500 is ₹450. The average is ₹466.67 because each price counts in proportion to the shares purchased at it, and more shares (100 of the 150) were purchased at ₹500.
What do the terms mean?
- Shares
- The quantity in one purchase. For a mutual fund, the units.
- Price per share
- The price paid for each share in that purchase.
- Amount
- Shares × price per share, for one purchase.
- Average price
- The total amount divided by the total shares.
Frequently asked questions
Is a share average the same as a stock average?
Yes. They are two names for the same calculation: the total amount paid divided by the total number of shares.
Does it include brokerage and other charges?
No. It uses the prices entered and nothing else. To include a charge, add the charge per share to the price per share of that purchase. Figures are gross of tax, of any product charge, and of any fee payable to a research analyst.
Can I use it for mutual fund units?
Yes. Enter the units as the shares and the NAV per unit as the price. Units can have up to 3 decimal places and the NAV up to 4.
What about bonus shares or a split?
Enter each purchase with the quantity and the price per share as adjusted after the bonus or split. For example, 100 shares purchased at ₹500, after a 1:1 bonus: enter 200 shares at ₹250. This is the price paid per share, not a tax figure.
Does the calculator keep what I type?
No. The calculation runs in your browser. Nothing you type is sent or stored, or added to the page address. Sharing the calculator sends only a link to this page.