Understanding the key differences in investment terminology.
Average cost includes fees, average price does not.
The arithmetic average of the prices you paid for your shares.
Your total expenditure (Principal + Commission) divided by the number of shares.
For small positions, the difference between average price and average cost is negligible. However, for active traders or large institution-sized blocks, commission fees can shift your break-even point by several cents.
Our calculator defaults to calculating Average Cost because it's the more conservative and accurate metric for Tax and ROI tracking.
Use our high-precision stock average calculator to get instant results including commissions and averaging down targets.
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