Stock Average Price Calculator

Your average cost is a weighted mean: every purchase counts in proportion to how many shares it bought. Cheap buys pull the average down only as far as they are large. Ten shares at Rs 50 barely dent a holding of 1,000 shares at Rs 100.

Your break-even is the price at which selling returns exactly what you spent, including the fees of the buy and the sell. With each leg costing a fraction c of its value, break-even is average × (1 + c) ÷ (1 − c). At the default 0.37% round trip, c is 0.185%, so break-even sits about 0.37% above your average.

You buy 300 shares at Rs 120, then 200 shares at Rs 95. You have paid Rs 55,000 for 500 shares, an average of Rs 110.00. If the stock trades at Rs 100 you are down Rs 5,000 (9.1%), and with 0.37% round-trip costs you need about Rs 110.41 just to get out even.

Say you want your average at Rs 105 and can buy at Rs 95. The planner solves it: buy 250 more shares (Rs 23,750), taking you to 750 shares at exactly Rs 105.00. Buying only as many shares as you already hold (500 at Rs 95) would give Rs 102.50.

Averaging down means buying more of a stock after it has fallen to lower your average cost. The arithmetic always works, but the arithmetic is not the question. The question is whether you would buy the stock today if you did not own it. If yes, adding at a lower price is a sound way to build a position in steps. If the reason you bought has changed, or the price is falling because the business is getting worse, buying more raises the amount you can lose.

• Decide the plan before the fall. Set how many buys you will make and the total you will put in, then use the position size calculator so the whole position stays within the risk you chose.
• Do not average into a stock you cannot explain. Read the latest results and announcements first, using the guide on researching PSX companies.
• Watch the cost of many small buys. Every buy and sell pays commission and fees. Check the full cost with the brokerage calculator.
• Averaging up is the same sum. If a stock you own has risen and you add more, your average rises too. The planner handles both directions.

When you sell part of a holding bought at different prices, which shares did you sell? FIFO (first in, first out) says the oldest. Average cost says a slice of every share at the running average. The same trade gives different booked gains: with 100 shares at Rs 100 and 100 at Rs 200, selling 100 at Rs 250 books +Rs 15,000 under FIFO and +Rs 10,000 under average cost, and leaves a remaining average of Rs 200.00 or Rs 150.00.

For tax, PSX capital gains tax rates depend on when each share was acquired and how long it was held, so every sale has to be matched to particular purchases. We could not confirm from a primary source whether NCCPL, which computes and collects the tax, matches sales first-in-first-out or on average cost, so this calculator does not claim either as the tax answer. Check the capital gains statement from NCCPL or your broker, and use the capital gains tax calculator for the rates. The Investify portfolio itself sells oldest shares first (FIFO), the same as the mobile apps.

The planner is most useful before you need it. Decide in advance the price levels at which you would add and how much you would add at each, then check what each step does to your average and to your break-even. Two small extra buys at lower prices move the average far less than one large one, and a plan that needs a very large buy to make a small difference to the average is a sign to leave the position alone.

Remember the daily limits too: a PSX stock can move 10% either way in a day (Re. 1 for stocks under Rs 10), so a planned buy at a much lower price may take several sessions to arrive, or may never. Check what is possible today with the upper and lower lock calculator.