⚠️ For educational purposes only. Not financial advice. Always use proper risk management.

Average Down Calculator

Calculate your new average cost after adding to a losing position.

New Average Cost
Total Cost
Total Shares
Cost Reduction
Unrealized Loss

Averaging Down: Risks and Rewards

Averaging down lowers your break-even price but increases total exposure and maximum loss. A position that was 1% of your account at first entry can become 3–4% after averaging down twice.

Professional traders have strict rules about averaging into losers: only average down if the original thesis is intact, never average down more than once, and define maximum position size before the first entry.