Stock Average price calculator tool allows you to find total share purchased and also average price of each share. You simply need to enter unit purhased each time and cost of share in seperate text boxes. Calculation will be done automatically as soon as you enter the values.

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When we start to invest in the stock market, one of the data that we are interested in learning to calculate is **the average price** at which we have bought **the shares** of that company, adding and including within this average price the commissions that we have been charged for the purchases. This way we can analyze **when we begin to obtain** real **returns** on that investment.

Many times, the investor buys shares of the same company for a certain time, at different prices; This **strategy allows risk diversification** over time, a very feasible **prudent measure** for investors who are beginning to immerse themselves in the world of finance.

To calculate the average price of the shares acquired, we must especially take into account the commissions we pay in our broker:

**We will add all the purchases of shares** of the company ( **including the commissions** that the **broker** has charged us ) and we will divide the result by the number of shares we own in the company.

Let's take an example:

Suppose we **make purchases** of XYZ **shares** :

- 500 shares at 4 usd
- 700 shares at 5 usd
- 300 shares at 6 usd

Let's think that **the purchase commission that the broker charges us is 10 usd** in the three times that we have bought shares. Therefore, the total amounts of each purchase will be:

- 500 shares at 4 usd: (500 x 4) + 10 = 2,010 usd
- 700 shares at 5 usd: (700 x 5) + 10 = 3,510 usd
- 300 shares at 6 usd: (300 x 6) + 10 =
**1,810 usd**

In total, **we have paid 7,330 usd** between the three purchases (2,010 + 3,510 + 1,810) **for 1,500 shares** , which means that its **average purchase price** is **4,886 euros (7,330 / 1,500).**

To reduce the cost of these operations and begin to obtain a higher return on our investments, you can choose to analyze the commissions of your broker and investigate if there are cheaper brokers with which to operate .