What are averaging down and averaging up?
Averaging down means buying more when the price falls to lower your average price; averaging up means buying more as it rises to grow your gains.
Average price formula
New average = (old average × old quantity + buy price × buy quantity) ÷ total quantity
Think before averaging down
- A lower average price doesn't reduce the loss itself. With more invested, a further drop means a bigger loss.
- Averaging down without checking why the price fell (weaker earnings, industry changes) is risky.
- Buy and sell fees and taxes (securities transaction tax when selling Korean stocks) are extra.
This calculator works for any asset with a price and quantity: stocks, ETFs, crypto and more. Investment decisions are your own responsibility.
FAQ
How many shares do I need to reach a target average?
In the "Target average price" tab, enter the average you want and the buy price to get the quantity needed. The buy price must be below the target average.