Stock Average Price Calculator
Institutional weighted average purchase price and breakeven tool for NSE/BSE equity tranches.
Initial & Additional Purchase Tranches
New Weighted Average Price
₹2350.00
Total Holdings: 150 Shares
Volume Weighted Average Price (VWAP) Formula
All calculations on InvestResearch India execute with 28-digit precision arithmetic via decimal.js, eliminating floating-point drift and adhering to statutory regulatory conventions.
Example: Averaging Down on 100 Shares Bought at ₹500 with 150 Shares at ₹350
Tranche 1: 100 shares @ ₹500 = ₹50,000 | Tranche 2: 150 shares @ ₹350 = ₹52,500 | Current Market Price: ₹410
1. Total Capital Outlay = ₹50,00,000 + ₹52,500 = ₹1,02,500 2. Total Shares Owned = 100 + 150 = 250 shares 3. Weighted Average Price = ₹1,02,500 / 250 = ₹410.00 4. At CMP ₹410, portfolio breakeven is reached immediately (down from initial ₹500 required price)
Statutory Tax Framework (Union Budget FY 2026–27)
In India, the Income Tax Department strictly mandates First-In-First-Out (FIFO) method for capital gains taxation on equities. You cannot choose which specific lot of shares you are selling when computing STCG (20%) or LTCG (12.5%).
Frequently Asked Questions
What is the danger of 'averaging down' in individual stocks?
Averaging down reduces your breakeven price, but if the company's underlying fundamentals are deteriorating (governance issues, structural disruption, debt distress), buying more shares increases downside risk and concentrates capital in a declining asset.
Does stock averaging alter my tax basis under Indian income tax rules?
No. For income tax computation (ITR-2 or ITR-3), each trade lot maintains its own individual cost basis and acquisition date under the FIFO (First In First Out) rule.