Average Down
Average down
Your new average entry price
See exactly what a second buy does to your cost basis: the new weighted average, how much lower it sits, and the move still needed to get back to break even.
Inputs
Your buys
Results
New position
New average price$85
Total units20
Total cost$1,700
Current value$1,400
Unrealised P&L−$300 (-17.65%)
Move to break evenFrom the current price back to your average21.43%
Average improved byVersus your first entry15%
How it works
The maths
The new entry is a weighted average — the size of each buy decides how much it pulls the average.
total cost = (p1 × q1) + (p2 × q2) units = q1 + q2 average = total cost ÷ units
- A lower average does not make a bad position good — it enlarges it.
- Check total exposure against your risk rules before adding.
FAQ
Averaging down — frequently asked questions
Averaging down is buying more of an asset after the price has fallen, which lowers your average entry price. It reduces the move needed to break even, but it also increases the money exposed to a position that is already going against you.
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Educational tool. Not financial advice. More tools