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Average Down Calculator

DCA math · lower your cost basis · when to buy more

> original_position

$15,000.00

> average_down_plan

$6,000.00
> new_avg_price$140.00
> avg_price_reduction-$10.00 (-6.67%)
> total_shares150 shares
> total_invested$21,000.00
> breakeven_price$140.00 (same as avg)
> price_needed_for_+10%_profit$154.00

> multi_step_scenario (buy 25% more at each dip level)

> /reference

> New average = (orig_shares × orig_price + add_shares × buy_price) / (orig_shares + add_shares)

> Averaging down only makes sense if the fundamental thesis hasn't changed

> Warning: averaging down a falling stock amplifies losses if the thesis is broken

> Value averaging: buy more when price is below target, less when above

> Never average down more than your position sizing rules allow (max 5–10% of portfolio)

> NFA — averaging down can turn a small loss into a large one. Know when to cut.