Created By : Vaibhavi Kumari

Reviewed By : Rajashekhar Valipishetty

Last Updated : Apr 20, 2023

Have you ever paid for a stock ? Then make use of the Stock Average Calculator that is specially designed for you. This online stock average calculator is extremely  easy to use and it gives instant results. You have to only insert the Shares Bought and the Purchased price to get the Total Share and Average Cost.

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### Average Stock Definition

In Maths, Average Stock is equal to stock at the beginning of the period plus the stock at the end of the period that is being divided by two. It also represents the investment inside a business that has been made in its inventory.

Average Stock Formula

Given, below is the Stock Average Formula on how to calculate the average price if you have to purchase the same stock in n times.

• Total shares bought = 1st share bought + 2nd share bought + 3rd share bought + …………. + nth share bought
• Total amount bought = 1st share bought*1st purchased price + 2nd share bought*2nd purchased price + 3rd share bought*3rd purchased price + ………… + nth share bought*nth purchased price
• Stock Average Price = Total Amount Bought / Total Shares Bought

How to find Average Stock ?

• Firstly, we will find the value of total shares and average cost from the given data.
• Then, we will substitute the known values in the formula of Average Stock i.e. Stock Average Price = Total Amount Bought / Total Shares Bought
• Then perform the required mathematical calculations to obtain the Stock Average.

Stock Average Examples

Example 1:

A man buys 3,6,8 and 4 shares of A,B,C and D companies which cost Rs 100, Rs 40, Rs 20 and Rs 80 per share respectively. Find the Average Cost of the share?

Solution:

Given that,

Company A,B,C and D = 3,6,8,4 (shares)

Purchase Price:

Company A = Rs.100 per shares

Company B = Rs.40 per shares

Company C = Rs.20 per shares

Company D = Rs.80 per shares

Total shares = (A + B+ C + D) shares

Total shares = (3 + 6 + 8 + 4) shares

Total shares = 21

Total Amount of Shares = No.of shares*Purchase price(A) + No.of shares*Purchase price(B) + No.of shares*Purchase price(C) + No.of shares*Purchase price(D)

Total Amount of shares = 3*100 + 6*40 + 8*20 + 4*80

Total Amount of Shares = 300 + 240 + 160 + 320

Total Amount of Shares = Rs.1020

Stock Average Price = Total Amount Bought / Total Shares Bought

Put the value of Total Amount of shares i.e Rs.1020 and Total Shares Bought i.e 21 in the above formula.

Stock Average price = 1020 / 21

Stock Average price = Rs.48.5714

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### FAQs On Stock Average Calculator

1. What is Average Stock?

Average stock is the mean price of the asset over some period of time.

2. How important is it to calculate the average stock price?

The average stock price is the key ability for investors that can be used when they have to buy shares of a company at different prices.

3. What is the formula of Average Stock?

The formula of average stock price is equal to the Total Amount Bought divided by the Total Shares Bought.