Average down calculator
Buying lower pulls the average down, but far less than it looks. Enter the current position and the new price to see the resulting average, then a target average to get the amount needed.
Averaging down does not improve the asset, only your reference price. If the fall has a fundamental cause, buying more just increases exposure to the same problem.
Frequently asked questions
Is averaging down always a good idea?
No. It works when the drop is temporary and your thesis still holds. On a structurally declining asset it only deepens the loss.
Why does the average move so little?
The average is weighted by units. If the new buy is small next to the existing position, its effect is proportionally small.
What is periodic accumulation?
Buying a fixed amount at regular intervals whatever the price. It produces an average automatically, without trying to catch the bottom.