How to use the average price calculator
Choose how you want to enter purchases. โQuantityโ is best when you know how many coins each order filled; โAmount in USDโ is handy for recurring buys where you know the dollars spent. Add as many rows as you need โ the average updates instantly. For exact figures, use the fill prices and quantities from your exchange history rather than rounded numbers.
In the second block, enter the current price and the average you would like to reach. The calculator tells you how many coins to buy at the current price and how much money that takes. If the target is not reachable โ for example, it is below the current price โ it says so.
The formulas
The average price is a quantity-weighted mean, not a simple average of prices: a large buy at a low price matters more than a small buy at a high one.
average = ฮฃ(qty_i ร price_i) / ฮฃ qty_i
To reach a target average T by buying x coins at current price P:
x = Q ร (A โ T) / (T โ P)
(Q = coins held, A = current average, P < T < A)Example: the real cost of averaging down
You bought 0.05 BTC at $68,000, 0.05 BTC at $58,000 and 0.1 BTC at $52,000. You hold 0.2 BTC with a total cost of $11,500, so your average is $57,500 โ not the $59,333 you would get by averaging the three prices. With BTC at $55,000 you are down about 4.3%.
To pull the average down to $56,000 you would need to buy 0.3 BTC at $55,000 โ $16,500, more than everything you have invested so far. The closer the target is to the current price, the more you need to buy; the formula grows without limit as the target approaches the market price. That is the mathematical reason โjust average downโ can quietly double a position's size and risk.
When averaging down makes sense โ and when it does not
Averaging down is a position-sizing decision, not a rescue plan. A few rules of thumb used by careful investors:
- Decide the total size you are willing to hold before the first buy, and split it into tranches in advance.
- Average down only into an asset you would buy fresh today at this price โ not to โget back to evenโ.
- Keep fees in mind: every extra buy adds a fee, which raises the break-even price slightly.
- Averaging up (buying more as the price rises) also changes the average โ the same calculator works for it.
- If you prefer a schedule instead of reacting to price, a DCA plan does the same job more calmly.
Average price, break-even and profit
Your average price is the break-even point before fees. To include exchange fees and network costs in the exit price, use the Break-Even Calculator with your average as the buy price. To see the profit at a given sell price, use the Profit Calculator. For tax-style gain calculations per purchase lot, the Tax-Lot Calculator handles FIFO, LIFO and HIFO.
Average price across exchanges and wallets
If you bought the same coin on different platforms, the exchange screens each show their own average โ none of them sees the full picture. Combine all purchases here to get one true average for your whole position. Transfers between your own wallets do not change the average: only purchases (and sales, if you want a running cost basis) do. Network fees paid to move coins between your wallets are a cost of holding rather than a purchase; many people add them to the total spent so that the break-even stays honest.
If you sold part of the position, the remaining coins keep the same average under the average-cost method. Under FIFO or LIFO the remaining lots are specific purchases, so the average of what is left can change โ the Tax-Lot Calculator shows which lots remain open after each sale.
Frequently asked questions
+How do I calculate my average crypto buy price?
Add up the total money spent on all purchases and divide by the total number of coins bought. Simple averaging of the prices is wrong when the purchase sizes differ.
+How much do I need to buy to lower my average?
Use x = Q ร (A โ T) / (T โ P), where Q is the coins you hold, A your current average, T the target average and P the current price. The calculator does this and shows the cost.
+Why does the calculator say my target is unreachable?
Buying at the current price can only move your average towards that price. A target below the current price (when averaging down) can never be reached.
+Should I include fees in the average?
For the most accurate break-even, yes โ add fees to the amount spent (use the USD input mode) so they are included in the cost.
+Does this work for selling or averaging up?
Yes. If the current price is above your average, the same formula tells you how many coins to buy to move the average up to a target.
Calculations run entirely in your browser; nothing you type is sent to KOT.CASH. Results are estimates for information only and are not financial, tax or legal advice.