Average purchase price weights each trade by the number of shares bought.
Compound Interest Rate Calculator
Form
Results
stock cost
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Table of Contents
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What is Stock Average?
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How to Use This Calculator
- Enter or select 1st buy #, 1st buy price, 2nd buy #, 2nd buy price, 3rd buy #. Complete any remaining fields required by your chosen method.
- Check the unit beside each measurement. For a percentage or rate, use the scale and time period stated in the form.
- Choose Calculate, then compare the output with the formula and example below. If you change a value or option, calculate again to update the result.
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Formula Used
Average = total purchase cost/total shares
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Variables Explained
| Input | What it means |
|---|---|
| 1st buy # | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| 1st buy price | The stated purchase or selling amount, in the same currency as the related costs. |
| 2nd buy # | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| 2nd buy price | The stated purchase or selling amount, in the same currency as the related costs. |
| 3rd buy # | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| 3rd buy price | The stated purchase or selling amount, in the same currency as the related costs. |
| 4th buy # | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| 4th buy price | The stated purchase or selling amount, in the same currency as the related costs. |
| 5th buy # | Use the measured or stated value for this item, with the unit or category shown beside the field. |
| 5th buy price | The stated purchase or selling amount, in the same currency as the related costs. |
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Worked Example
10 shares at 20 and 30 at 24 give an average cost of 23.
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Why Use This Calculator?
Compare the result with the underlying statement, budget or proposed transaction. It is most useful when every amount uses the same reporting period and the same accounting definition.
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Common Mistakes
- Do not average the two prices equally when the trade sizes differ.
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Frequently Asked Questions
Should I use monthly or annual figures?
Use one consistent period for every amount and rate in the relationship. If a form specifies an annual rate or a monthly amount, follow that label rather than mixing time periods.
Does the result include fees and tax?
Only the costs and taxes represented by the inputs and formula are included. A real transaction can include other charges, so compare the estimate with the underlying agreement or statement.
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