Share Averaging Down Calculator
Model averaging down strategies to recover a losing stock position
Choose what you want to find: how much to spend, target average cost, or break-even price.
// Averaging Down Basics
If a stock is down 40%, buying more at the lower price reduces your average purchase cost, bringing your break-even price closer to current market levels. This lowers the gain % you need to recover.
// Dollar-Cost Averaging Effect
Each additional purchase at the same (or lower) price reduces your average cost and position loss. The effect diminishes as you add more capital, approaching the market price asymptotically.
// Commission & Costs
Each trade incurs a commission. On small positions this can significantly impact your break-even. Factor in both buy and eventual sell costs.
// Risk of Averaging Down
Averaging down works if price recovers, but if the stock continues falling you increase losses. Only average down if you believe in the fundamentals.