🎯 Average Down & Break-Even Calculator
If you already hold a position and buy more at a different price, your average cost changes. This calculator shows the new average and how far the price must move for you to break even.
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How to use the average down & break-even calculator
- Enter the units and price of your first buy.
- Enter the units and price of the second buy.
- Add the current price.
- Read the new average price and the % move to break even.
Strategies that use this tool
Value Investing
Value investing means looking for good businesses whose share prices appear lower than their underlying worth. The idea is to buy with a margin of safety and wait for the market to recognize the value.
💥Breakout Trading
Breakout trading looks for price escaping a well-defined range or level, aiming to catch the start of a new move. Strong volume on the break can suggest real conviction behind it.
⏱️Day Trading Basics
Day trading means opening and closing positions within the same trading day, avoiding overnight exposure. It demands speed, discipline and strict risk control, and many beginners lose money doing it.
⚡Scalping (Handle with Care)
Scalping tries to capture very small price moves many times a day, often holding positions for seconds or minutes. It is one of the most demanding and costly styles, and most people who try it lose money, so treat it with strong caution.
Frequently asked questions
What is averaging down?
Buying more of something after its price has fallen, which lowers your average cost.
Is averaging down a good idea?
It can increase risk if the reason for the fall is serious. Have a plan before adding more.
Why does a 50% drop need a 100% gain?
Losses and gains are measured from different starting points, so recovering takes a bigger %.