# Share Market Average Calculator

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Share Market Average Calculator is a tool designed to help investors calculate the average purchase price of stocks they have bought over multiple transactions. This is crucial for understanding the cost basis of an investment and making informed decisions about buying, holding, or selling stocks.

## What is a Stock Average Calculator?

A Stock Average Calculator is an online tool that helps investors calculate the average price at which they have purchased shares of a particular stock. By inputting each purchase’s buy prices and quantities, the calculator determines the overall average price, total quantity of shares, and total amount spent. This helps analyze the investment and strategize future actions.

## Why Use a Stock Average Calculator?

Accurate Investment Analysis: It provides a precise average price, making it easier to evaluate the performance of your stock investments.

Decision Making: Knowing the average purchase price helps in making informed decisions about whether to buy more, hold, or sell shares.

Simplifies Complex Calculations: Manually calculating the average purchase price can be time-consuming and error-prone, especially with multiple transactions. This tool automates the process.

Cost Basis Calculation: For tax purposes, understanding your cost basis (the original value of an asset) is crucial. The calculator helps in determining this accurately.

## How to Use the Above Online Stock Average Calculator?

Enter Purchase Details: Start by entering the buy price and quantity for each purchase. The form initially provides fields for the first two purchases.

Add More Purchases: If you have more transactions, click the “+ Add new purchase” button to add more fields for additional purchases.

Calculate Average: Once all purchases are entered, click the “Calculate Average” button. The calculator will display the total quantity, average price, and total amount spent.

Reset: To clear the form and start over, click the “Reset” button.

What is the Formula Used to Calculate the Average Stock Price?

The formula to calculate the average stock price is:

**Where:**

Total Amount Spent is the sum of the product of each purchase’s price and quantity.

Total Quantity of Shares is the sum of the quantities of all purchases.

### Example for Calculation of Average Stock Price

Suppose you made the following stock purchases:

First Purchase:

Buy Price: $100

Quantity: 10 shares

Second Purchase:

Buy Price: $120

Quantity: 5 shares

Third Purchase:

Buy Price: $110

Quantity: 15 shares

To calculate the average stock price:

**Total Amount Spent:**

First Purchase: 100 × 10 = $1000

Second Purchase: 120 × 5 = $ 600 120

Third Purchase: 110 × 15 = $ 1650

Total Amount Spent = $1000 + $600 + $1650 = $3250

**Total Quantity of Shares:**

First Purchase: 10 shares

Second Purchase: 5 shares

Third Purchase: 15 shares

Total Quantity of Shares = 10 + 5 + 15 = 30 shares

Average Stock Price:

Thus, the average stock price for these purchases is $108.33 per share.