The average stock price calculator allows you to track the value of stocks at any point in time. These calculators help you keep an eye on your stock investments and ensure that you make a profit over time. The best thing about using an average stock price calculator is that it can help determine your stocks' value compared to other similar stocks. This gives you an idea of whether or not your investments are growing or declining and should be factored into any investment decision.
What is the stock price calculator?
The stock average calculator enables you to know the value per share at which you have purchased your stocks. Also, this calculator shows the price when you made each purchase and the current value of your stocks. Stock average calculator will help you figure out the exact cost basis of your stocks without having to open an account with any brokerage firm. You can get access to stock price calculator online. There are a number of paid and free calculator are available to calculate average stock price.
This is the only time you will ever hear people mention cost basis. What is it? It simply refers to how much you purchased several shares of a stock and then averaged them out over time. This is the most important metric for traders and investors because it gives you an idea of how much profit or loss you've made from your investment over that interval.
How to Calculate Average Cost Price?
Calculating the Average Cost Price is one of the simplest methods for calculating cost basis and determining your gains or losses when you sell shares. This can be especially helpful for investors who plan to sell shares that have appreciated but may still have tax liabilities; it's also important for investors holding stocks subject to taxes at death.
The average cost method is a great way to determine how much you made or lost on an investment. The average cost basis of your stock calculates what you paid for your investments, including any reinvested dividends, capital gains, and returns of capital. You can then compare that figure with your overall profit and loss to see how much you made or lost throughout owning your stocks.
How to use stock average price calculator?
Nowadays we have so many calculation sites online or offline. Using these sites, we can easily calculate. The average stock price is the arithmetic mean of all our shares. The cost basis is calculated above, except that we need to divide it by the number of shares we own. Stocks with lower volatility and lower costs might be higher on the list.
Cost basis = (p1 * q1 + p2 * q2 + ... + pi * qi) / Number
Here,
Number = q1 + q2 + ... + qi — the overall number of shares purchased
q1 — Quantity of Shares purchased at first;
p1 — first buy price for shares;
q2 — Quantity second-purchased shares;
p2 — Second buy price for shares;
Qi — Quantity of shares purchased most recently; and
Pi — Shares' most recent purchase price.
Though you understand the idea of a weighted average, you have surely observed that the cost basis is exactly the weighted average of successive prices, with the weights determined by the number of shares purchased at each step.
We will now use the before example to calculate the average stock price.
p1 = $85
q1 = 1
p2 = $84
q2 = 1
p3 = $83
q3 = 1
p4 = $75
q4 = 1
p5 = $77
q5 = 1
p6 = $75.5
q6 = 1
Total Number of Shares Purchased= 6
As a result, the following is the average stock price or stock cost basis:
stock cost basis = $79.92
How do you calculate the profit or loss of stock?
At one time, we have the stock cost basis, and we need to perform a calculation to calculate stock profit. Here is the formula: (Current stock price - Cost basis) * Number
Let's say AMD stock increased to $ 100 per share today. Then:
Calculate Profit on stocks = ($100 - $79.92)*6
Stock of profit = $120.50
How about percentage stock profit? You need to use current stock price in the average stock price calculation formula because we anticipated that you would also require it. We anticipate that this calculation will result in a profit of at least 100%.
Profit is calculated as (((Current Stock Price- Cost Basis) / Cost Basis)*100)%.
Profit percentage is equal to (($100 - $79.92)/ $79.92)*100%, or 25.13%.
Final Words
Hope you have complete idea about how can you use stock average calculator. If you find it hard to calculate the average stock price manually use online stock average calculator to get the results.
