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Average Share Price Formula:
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The Average Share Price (AP) represents the mean cost per share of an investment, calculated by dividing the total amount invested by the total number of shares owned. This metric helps investors track their cost basis and evaluate investment performance.
The calculator uses the average share price formula:
Where:
Explanation: This simple division gives you the average price paid per share across all your purchases, which is particularly useful for dollar-cost averaging strategies.
Details: Knowing your average share price helps determine your break-even point, assess investment performance relative to current market price, and make informed decisions about when to buy more shares or sell existing positions.
Tips: Enter the total amount you've invested in dollars and the total number of shares you own. Both values must be positive numbers (TI > 0, TS > 0).
Q1: How does this differ from volume-weighted average price (VWAP)?
A: This calculates your personal average cost basis, while VWAP is a trading benchmark that weights price by volume throughout the trading day.
Q2: Should I include fees in my total investment?
A: Yes, for accurate cost basis calculation, include any commissions or fees paid to acquire the shares.
Q3: How does dollar-cost averaging affect my average share price?
A: Dollar-cost averaging typically results in an average share price that reflects the mean market price over your investment period, smoothing out volatility.
Q4: What if I've sold some shares?
A: This calculator assumes you're calculating the average price for your current holdings. For tax purposes, you may need to use specific identification or FIFO/LIFO methods.
Q5: Can I use this for cryptocurrency investments?
A: Yes, the same formula applies to any asset where you've made multiple purchases at different prices.