Everything About Averaging Down
Averaging down means buying more of a stock after its price falls to lower your average purchase price. The new average is (existing investment + additional investment) ÷ total shares. Buying 100 shares at 40,000 KRW on top of 100 held at 50,000 lowers the average to 45,000 — so the stock only needs to recover to 45,000 to break even. This calculator supports multiple buy rounds and shows the cumulative average after each one.
In practice, the reverse question comes up more often: "How many shares at today's price do I need to bring my average down to X?" The answer is x = shares held × (current average − target) ÷ (target − current price). Mathematically, the target must lie between the current price and your current average — and the closer the target gets to the current price, the more shares and cash you need, growing exponentially.
Enter the current price to see the market value, unrealized profit/loss, and return of the whole position. Note that a lower average does not shrink your existing loss: the loss percentage improves, but with more capital deployed, the same further decline costs you more in absolute terms.
Pro tip: averaging down only makes sense for temporary declines in fundamentally sound companies. Mechanically buying every dip without understanding why the price fell is a fast way to compound losses; a pre-planned scaling strategy (e.g., fixed portions every 10% drop) is safer. Fees and taxes are not included in these calculations. This tool is for informational purposes only and is not investment advice — all investment decisions and outcomes are your own responsibility.