Investor guide
How to Calculate Average Stock Price
Average purchase price is a weighted average: purchases with more shares contribute more to the final result.
Reviewed 14 August 2026The formula
Multiply the shares in each purchase by that purchase price. Add all purchase values, then divide the result by the total number of shares.
Average price = total purchase value divided by total shares purchased.
Example
If you buy 10 shares at ₹100 and 20 shares at ₹80, the total purchase value is ₹2,600 and the total quantity is 30. The weighted-average price is ₹86.67 per share.
Costs and risk
Brokerage, taxes, exchange fees, and other charges can increase the actual cost basis. Averaging down also increases exposure and does not make a falling investment safer.