What is Average Price?
Average price, also known as cost basis, is the weighted cost of your investment after multiple purchases at different prices. It gives you a single entry price that reflects all of your buys combined.
This is useful when you buy the same asset more than once. Instead of tracking each order separately, average price tells you what your real entry level is.
How Average Price Works
Each purchase contributes to your total cost and total quantity. The calculator combines those values into one weighted result. Higher-priced buys push the average up. Lower-priced buys pull the average down.
Total Cost = sum of all (price × amount) entries
Total Quantity = sum of all amounts
Example
If you buy 1 unit at $100 and 1 unit at $200, your total cost is $300 and your total quantity is 2. Your average price is $150.
Why Average Price Matters
- Know your true entry point
- Estimate profit and loss more accurately
- Plan exits and recovery levels better
- Manage risk more effectively
Without average price, you may misread your position and think you are in profit when you are not.
How to Use This Calculator
- Enter each purchase price
- Enter the quantity bought
- Add more entries if needed
- Click calculate
Average Price vs DCA
Average price is the result of multiple buys. DCA is the strategy of investing regularly over time. DCA often leads to a smoother average price, but the two are not the same thing.
Frequently Asked Questions
A good average price is one that allows you to exit with profit based on your strategy and market conditions.
Yes, but it increases your exposure. Lowering your average should be done with a clear plan and risk control.
Not unless you include fees manually. Adding fees gives a more accurate cost basis.
Not exactly. Break-even includes fees and costs, while average price only reflects your entry cost.
Yes. It works for any asset where you buy multiple times at different prices, including crypto, stocks, and forex.