Average price calculator
Work out your average entry price when buying in several parts (DCA) and know your break-even to exit in profit.
By the TradingCalculator.Pro team · Updated on · About us
Start your 7-day free trial →Try position sizing free, no account needed →
Formula
Avg = Σ(price × qty) ÷ Σ qtyHow it works
Average entry price is a WEIGHTED average, not the average of the prices. You add up what you invested in each buy, add up the total quantity and divide the first by the second. Simply averaging the prices gives a different number, and almost always a more flattering one than reality.
That average is your real break-even: above it you profit, below it you lose, and it has nothing to do with what you paid the first time. It works the same for a planned scaled entry as for long-term DCA, but the two should not be confused: averaging down inside a trade that has a stop is changing the plan halfway through, and it is one of the most expensive ways to turn a bounded loss into an unbounded one.
What you get
- Weighted average price
- Break-even after averaging
- Ideal for DCA in crypto and stocks
Worked example
Three buys of the same asset: 500 units at $1.20, 500 at $0.95 and 1,000 at $0.72.
- First buy: 500 × 1.20 = $600.
- Second: 500 × 0.95 = $475.
- Third: 1,000 × 0.72 = $720.
- Total invested $1,795 across 2,000 units.
Average price = $1,795 ÷ 2,000 = $0.8975 per unit.
At $1.05 the position is worth $2,100 and shows a $305 profit, 17%. With only the first buy, that same $1.05 would be a $75 loss. What changed the outcome was the weight of the third buy, which contributes half the units: in a weighted average it is quantity that rules, not order or price.
How to use it
- Enter your inputs: the terms of the formula (capital, risk, prices and stop).
- The calculator applies the formula and returns the result in your instrument's units.
- Check the breakdown before trading: anything that cannot be computed is shown empty, never as zero.
Frequently asked questions
How do you calculate the average price of several Bitcoin buys?
Divide total invested by total units — do not average the prices. Three buys of $600, $475 and $720 totalling 2,000 units give an average of $0.8975 per unit. The simple average of 1.20, 0.95 and 0.72 would be 0.9567, almost 7% above the real one.
What is my break-even after averaging?
Exactly the weighted average price, plus costs. Above $0.8975 the position is in profit and below it in loss, regardless of what you paid first. If the broker charges commission both ways, the real break-even rises by the sum of the two.
Is averaging down a good idea?
It depends on whether it was in the plan before you entered or is a reaction to the loss. A scaled entry decided in advance — with its total risk calculated and a single stop — is a legitimate technique; adding capital because price went against you is changing the plan mid-trade and turns a bounded risk into an open one.
How does DCA affect the risk calculation?
Risk is measured on the COMPLETE position and the average price, not on each buy separately. With 2,000 units at a $0.8975 average and a stop at $0.80, the risk is (0.8975 − 0.80) × 2,000 = $195. Working it out leg by leg usually produces a smaller number than the real one.
Does this calculator work for partial sells?
Yes: when you sell part of it, the quantity drops but the average price of what remains does not change. Sell 1,000 of the 2,000 units and the average is still $0.8975, with $897.50 of capital committed. The average price only moves when you buy, never when you sell.