i What this calculator does
This calculator works out your true weighted average entry price after buying into the same instrument at multiple different prices, whether through planned scaling in or reactive averaging down.
Enter up to three separate entries (price and quantity for each), and the calculator returns your combined average entry price.
This calculator is for educational purposes only. Leave Entry 3 fields at 0 if you only have two entries.
Frequently asked questions
Why does my average entry price matter?
Your average entry price is what actually determines your break-even point and profit or loss once you've bought into a position at more than one price, it's a genuinely different, usually more favourable, figure than any single individual entry.
What's the difference between averaging down and scaling in?
Averaging down typically means adding to a losing position hoping for a reversal, often reactive and unplanned. Scaling in means deliberately entering a position across multiple predetermined price levels as part of your original strategy, a more systematic, planned approach.
Is averaging down a genuinely risky strategy?
It can be, since it increases your total exposure to a position that's currently moving against you, and requires a smaller eventual reversal to reach the new average break-even, but locks in more capital at risk if the move continues further against you.
Does this calculator work for both buying and selling?
Yes, enter each of your entries (price and quantity) regardless of whether you're building a long or short position, the weighted average calculation works the same way for either direction.
What happens if I enter at the same price twice?
The calculator handles this correctly, two entries at an identical price simply contribute proportionally more weight to that price level in the weighted average, exactly as they should.
Does the order of my entries matter for the calculation?
No, the weighted average formula produces the same result regardless of which entry you list first, second, or third, only the actual prices and quantities matter, not the sequence you enter them in.
Can I use this for closing partial positions too?
This specific calculator is built for combining multiple buy entries into one average. For partial closes and their effect on your remaining position, our Scaling In/Out Calculator handles that specific scenario.
What if my three entries were all losing trades before I averaged in?
The calculator doesn't distinguish between profitable and losing context, it purely computes the mathematical weighted average of the prices and quantities entered, the strategic wisdom of averaging into a loser is a separate consideration.
Is there a limit to how many times I should average into a position?
There's no fixed rule, but each additional entry increases your total capital at risk in that single position, worth having a predetermined maximum number of entries or total position size before you start, rather than deciding in the moment.
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