1. What is Average Share Price?

The average share price represents the mean acquisition cost per share of a stock or asset. It's calculated by dividing the total amount invested by the total number of shares owned.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Invested — Sum of all money spent purchasing the shares (USD)
• Shares Owned — Total quantity of shares acquired (unitless)

Explanation: This calculation helps investors understand their cost basis per share, which is crucial for determining profit/loss when selling.

3. Importance of Average Price Calculation

Details: Knowing your average price is essential for making informed investment decisions, tax calculations, and portfolio performance evaluation.

4. Using the Calculator

Tips: Enter the total amount you've invested in USD and the total number of shares you own. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I include fees in total invested?
A: Yes, for accurate cost basis, include all transaction fees and commissions in your total investment amount.

Q2: How does this differ from weighted average?
A: This is a simple average. For multiple purchases at different prices, you should use the weighted average method.

Q3: Why is my average price different from current market price?
A: Average price reflects your purchase costs, while market price shows current value - the difference determines your profit/loss.

Q4: How often should I recalculate my average?
A: Recalculate after every purchase to maintain an accurate cost basis for your holdings.

Q5: Does this work for fractional shares?
A: Yes, the calculator handles fractional shares and amounts precisely.