Stock/Crypto Average-Down Calculator
Combine existing lots and a proposed purchase to see the new weighted average price.
UNITS TAKE PRIORITY. LEAVE UNITS EMPTY TO USE A CASH AMOUNT.
Stock/Crypto Average-Down Calculator calculation coverage
- 01
Multiple purchase lots
- 02
Cash or unit input
- 03
New cost-basis output
A lower average price does not reduce the market risk of adding capital to a losing position.
About this tool
An average-down calculator combines an existing position with a proposed new purchase to show the resulting weighted average price. It also reveals the additional capital and total exposure required to lower the cost basis.
How it works
New average price equals existing cost plus new purchase cost, divided by total existing and added units. The calculation weights each price by the units purchased.
| Parameter | How it is used |
|---|---|
| Existing units | Current position quantity. |
| Existing average | Current weighted cost per unit. |
| New purchase price | Expected price of the added lot. |
| Cash or units added | Defines the size of the proposed purchase. |
A lower average with more capital at risk
An existing 10 units at $100 and a proposed purchase of 10 more at $80. Fees are excluded.
Total cost = 10 × $100 + 10 × $80 = $1,800. Total units = 20. Average = $1,800 ÷ 20 = $90.
The average falls from $100 to $90, while invested capital rises from $1,000 to $1,800.
At an $80 market price, the combined holding is worth $1,600 and still has a $200 unrealized loss.
How to use this tool
- Enter current units and their average cost.
- Add the proposed purchase price and either cash amount or units.
- Review the new average, total exposure and added concentration before deciding.
Frequently asked questions
Does averaging down reduce my loss?
It lowers the average entry but increases capital exposed. The position can still lose more money if price continues to fall.
Why is a simple average of prices wrong?
A simple average ignores purchase size. Weighted cost basis gives larger lots proportionally more influence.
Can I enter cash instead of units?
Yes. The calculator can convert a proposed cash amount into units at the new purchase price before combining the lots.