Average Down Calculator — Complete Guide

Averaging down means buying more shares when the price drops to lower your average cost basis. A lower average means you need less of a recovery to break even.

Average Cost Formula

Example: Hold 100 shares at $50, price drops to $40. Buy 100 more → new average $45. Break-even drops from +25% to +12.5% needed.

• Check fundamentals: Only average down if the company is still strong.
• Scale in: Don't use all reserves at once — buy in stages.