Find your new average cost per share after buying more shares at a lower price. Enter up to 10 purchases to see your break-even price and total position.
| Purchase | Price | Shares | Cost | Share of money |
|---|
When you buy additional shares of a stock you already own at a lower price, your weighted average cost moves down. This lowers the price the stock needs to recover to for you to be profitable. The math is straightforward: total amount invested divided by total shares owned.
| Purchase | Price | Shares | Total Cost | New Average |
|---|---|---|---|---|
| Initial buy | $60.00 | 100 | $6,000 | $60.00 |
| Average down #1 | $45.00 | 100 | $4,500 | $52.50 |
| Average down #2 | $38.00 | 150 | $5,700 | $46.29 |
| Total Position | $38–$60 | 350 shares | $16,200 | $46.29 |
The stock only needs to recover to $46.29 (not $60) for this position to break even, before trading fees and taxes. Each additional purchase at a lower price reduces the break-even further — but increases the total capital at risk in the same investment.
Doubling down each time multiplies risk fast. A disciplined approach: use fixed-dollar amounts per purchase (e.g., $2,000 each time), not increasing position sizes. This prevents any single stock from becoming an outsized portion of your portfolio. Set a maximum total position limit before you start (e.g., no more than 5% of portfolio in any single stock) and stop averaging down once you reach that limit regardless of price.