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How to Calculate Average Stock Price

Learn the formula and steps to manually calculate your weighted average share price.

1The Formula

Weighted Average Formula
(P₁ × Q₁) + (P₂ × Q₂) + ... / Total Qty

To calculate the total average cost, you must multiply each purchase price by the number of shares bought at that price, sum those totals, and divide by the total amount of shares held. This provides your weighted average cost basis.

2Practical Example

Buy #1: 10 shares @ $100
Initial principal: $1,000
Buy #2: 20 shares @ $70
Additional principal: $1,400
Final Calculation:
($1,000 + $1,400) / (10 + 20) = $80.00

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