How do I calculate my blended breakeven price after averaging down?

Enter your original share or contract count and entry price, then your additional shares and second, lower entry price. The calculator divides total capital committed by total shares to give your new blended breakeven price.

Does averaging down reduce my risk?

It lowers your breakeven price, but it increases the total dollar amount you have at risk in that position, since you are committing more capital to a trade that has already moved against you.

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What's my new breakeven price if I average down on a losing position?

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Enter Both Entries

Your Result

Fill in the fields on the left and click Calculate to see your blended breakeven price.

How this is calculated

Blended breakeven price is total capital committed across both entries divided by total shares or contracts held.
Averaging down lowers your breakeven price, but it also increases your total dollar amount at risk on a position that has already moved against you.
This calculator does not know why the position moved against you. A lower blended breakeven does not fix a broken thesis, it only changes the math on the same trade.
Commissions and fees are not included. Add them to the total cost figures yourself for a more precise number.

Risk & liability disclaimer: This calculator performs simple weighted-average arithmetic on the share counts and prices you enter. It does not know your trade thesis, stop-loss, or account size, and does not tell you whether averaging down is appropriate for this specific trade. Averaging down increases the total capital committed to a single position. This is not financial advice. Trading involves risk of loss. Trading Habits is not a broker-dealer or registered investment adviser.

What's my new breakeven price if I average down on a losing position?

Enter Both Entries

Your Result

How this is calculated

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