Stock Average Calculator

Averaging down — buying more shares as the price falls — lowers your cost basis and reduces the price the stock needs to recover to before you break even. It works only when the original investment thesis is intact and the price drop reflects market noise, not deteriorating fundamentals. The risk is that you commit more capital to a falling asset, so a continued decline magnifies losses. Use averaging only on high-conviction holdings with strong fundamentals — never as a way to "rescue" a position whose thesis has broken.

Dollar-Cost Averaging (DCA) is buying a fixed-rupee amount at regular intervals — weekly, monthly, quarterly — regardless of price direction. It's a planned, mechanical approach that smooths your entry over time and removes the timing decision. Averaging down is a reactive strategy: you buy extra shares specifically because the price has fallen, in order to lower your cost basis. Both end up calculating the same weighted-average price, but DCA is a discipline; averaging down is a conviction call after a drawdown.

Your weighted-average buy price is useful for tracking cost basis and break-even, but it does NOT determine capital gains tax. For Indian tax purposes, capital gains are computed on a FIFO (First-In-First-Out) basis — meaning the shares you bought first are deemed sold first when you sell. So if you buy in three lots and sell some, the holding period and gain on the sold shares are computed against your earliest lot's price and date, not against the weighted average. This affects whether the gain is taxed as short-term (under 12 months for listed equity) or long-term, and at what rate. Consult a CA for tax filing.

Profit (or unrealized P&L) = total shares × current market price − total invested. Put another way, multiply your total shares by the current price to get the current value of the position, then subtract the total amount you've put in across all lots. The percent P&L is that difference divided by total invested, multiplied by 100. Note that this is the gross figure — actual realised profit after selling will be reduced by brokerage, STT, exchange transaction charges, GST, stamp duty, and (for short-term holdings) capital gains tax.