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This average price calculator adds up all your purchases of a share, fees included, and gives you the weighted average price, the break-even to sell without a loss and the weight of each purchase in your position.
- Purchase 1Subtotal €1,507.50
- Purchase 2Subtotal €2,135.50
Weighted average price
€145.72
Total shares25
Total invested€3,643.00
Fees€5.00
Estimated break-even
€145.82
* This price includes the fees paid on purchase and estimates a similar fee on sale. It is the real minimum price at which you do not lose money.
Distribution by price
25shares
- €150.5010 · 40 %
- €142.2015 · 60 %
The DCA strategy (Dollar Cost Averaging)
Trying to guess when the market has bottomed (Market timing) is close to impossible even for professionals. The DCA (Dollar Cost Averaging) is the answer for the private investor.
It means investing the same amount at regular intervals (say, €200 a month), regardless of whether the market is rising or falling.
"The investor's chief problem — and even his worst enemy — is likely to be himself."
— Benjamin Graham (author of 'The Intelligent Investor')
Psychological and mathematical advantages
Mathematically, you buy fewer shares when they are expensive and more when they are cheap ("on sale"), which brings down your average purchase price over the long run.
Psychologically, it removes the stress of deciding "when to get in". If the market falls, you are glad because you buy cheaper. If it rises, you are glad because your portfolio is worth more. It is a strategy where you always win mentally.
If you want to complement this strategy with an institutional, practical view on financial planning, saving and investing, the Personal finance guide from the Bank of Spain is a good starting point for grounding concepts and deciding with perspective.
How the average purchase price is calculated
The weighted average price is everything you have paid for a share, fees included, divided by the shares you hold. Each purchase weighs according to its size: a large purchase at a good price lowers the average more than a small one.
Average price = (Σ price × quantity + fees) / total shares
The break-even is the price at which you sell without a loss: the selling fee, spread across your shares, is added to the average price. The calculator assumes it equals the average fee of your purchases. Above the break-even you profit; between the average price and the break-even, the fee eats the gain.
What each broker costs you when averaging
Same plan, four fee schedules: 12 purchases of 10 shares at €20 (€2,400 over the year) with a fixed fee per trade. Worked out with the calculator’s own function.
| Fee per purchase | Average price | Break-even | Fees per year |
|---|---|---|---|
| No fee | €20.00 | €20.00 | €00 % of the amount invested |
| €1.00 | €20.10 | €20.11 | €120.5 % of the amount invested |
| €2.00 | €20.20 | €20.22 | €241 % of the amount invested |
| €5.00 | €20.50 | €20.54 | €602.5 % of the amount invested |
A fixed fee weighs according to the size of the purchase: €2 on €200 is 1%; on €1,000, 0.2%. If you buy small amounts often, choose a broker with no minimum fee or with recurring investment plans, or group your purchases. Watch the currency conversion on foreign shares: it is usually the fee you do not see.
Our portfolios and brokers
This is how we split our own money: the main portfolio, the emergency cushion kept separate, the children's long-term savings and fixed income in bonds. Each with the provider that fits its purpose.
Principal
Main portfolio
Global access to 50+ markets. Core ETFs from €1. Crypto ETNs. A diversified portfolio.
Emergency fund
Interest at the ECB rate. Your emergency fund, always available.
Children's future
Automated index investing, free for the first year through this link up to €15,000.
Fixed income & bonds
Bonds with regular coupons and access to US and European markets. Plus interest-bearing savings in € and $.
Smart Money Activity selects these services on quality and price. Some links may be affiliate links. Terms (fees, rates) depend on each provider; check them on their official sites.
Averaging down: when it makes sense and when it does not
Buying more of a share that has fallen lowers your average price, but it does not fix a bad investment: it only makes it bigger. The question is not whether the price has dropped, but whether the company is worth the same as when you bought.
It makes sense when
- The thesis is intact: the company earns the same or more and the drop comes from the market, not the business.
- It was already in your plan: periodic purchases (DCA) that happen whether the price rises or falls.
- The position is still a reasonable share of your portfolio after buying.
It does not make sense when
- The drop reflects real deterioration: falling profits, growing debt, a cut dividend.
- You buy only because “it has already fallen a lot”. A falling knife can fall further.
- Averaging means concentrating your portfolio in one share or using money you need.
The Spanish tax agency does not use your average price: FIFO when you sell
Your average price is for deciding, not for taxes. In Spanish income tax (IRPF), when you sell part of a position built with several purchases, the shares bought first are deemed sold (FIFO: first in, first out), each at its own purchase price. The taxable gain or loss can be very different from what you see here.
Example: you buy 10 shares at €150 and later 15 at €142; your average price is €145.20. You sell 10 at €160: for tax purposes you sold the 10 bought at €150, with a gain of €100 (less fees), not €148.
Two-month rule. If you sell at a loss and buy shares of the same company within the two months before or after, that loss cannot be declared until you sell the new shares. It directly affects anyone who averages down and sells part to offset.
Source: Spanish income tax law, articles 37.2 (FIFO for homogeneous securities) and 33.5 (repurchase within two months). This calculator does not compute taxes: for your case, consult a tax adviser.
Frequently asked questions about the average price
What is the weighted average price of a share?
It is the price at which, on average, you bought each share in your position, taking into account how many you bought at each price and the fees paid. If you buy 10 at €150 and 15 at €142, your average price is €145.20 plus fees.
Are fees included in the average price?
Yes, and they should be: a €2.50 fee per purchase in the example raises the average price by 20 cents per share. Without them, your average price looks better than it is and you sell “in the green” while losing money.
What is the break-even point?
The selling price at which you recover exactly what you paid, buying and selling fees included. It sits slightly above the average price. The calculator estimates it with a selling fee equal to the average of your purchase fees.
How do I lower my average price?
By buying more shares below the average price. The larger the purchase and the lower the price, the more the average drops. Before doing so, check whether the company is still worth the same: lowering the average price of a bad investment only makes it bigger.
Does the Spanish tax agency use the average price to calculate the gain?
No. Spanish income tax applies FIFO: when you sell part of a position, the shares bought first are deemed sold, each at its real price. Your average price helps you decide, not to file your return.
Is this calculator financial advice?
No. It is an educational tool that applies a formula to the data you enter. It does not know your situation or compute taxes. To decide on your portfolio or your tax return, consult an adviser registered with the CNMV or a tax adviser.