📝 Description:

The Stock Average Price Calculator helps traders determine the number of additional shares required to reach a desired average purchase price. If you’ve bought shares at a higher price and the stock price has dropped, you may want to average down your purchase price by buying more shares at a lower cost.

This tool calculates how many shares you need to buy at the current price to reach your target average price. It ensures that the target price is achievable and prevents incorrect calculations, such as trying to match the exact current price.

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💡 How to Use the Calculator:

1. Enter your previous purchase details:
   • Old Buy Price (The price at which you previously bought shares)
   • Old Quantity (Number of shares you already own)
2. Enter the current market price:
   • Current Price (The price at which shares are currently trading)
3. Enter your desired average price:
   • Target Average Price (The price you want as your new average after buying more shares)
4. Click “Calculate” to find out how many additional shares you need to buy.
5. Click “Reset” to clear all input fields and start a new calculation.

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📊 How the Calculation Works:

The formula used to calculate the required additional shares is: Required Shares=(Old Price×Old Quantity)−(Target Average×Old Quantity)Target Average−Current Price\text{Required Shares} = \frac{(\text{Old Price} \times \text{Old Quantity}) – (\text{Target Average} \times \text{Old Quantity})}{\text{Target Average} – \text{Current Price}}Required Shares=Target Average−Current Price(Old Price×Old Quantity)−(Target Average×Old Quantity)​

🛑 Important Considerations:

✅ If the target price is higher than the old buy price, it’s not possible to reach that price.
✅ If the target price is equal to the current price, you would need infinite shares, which is impossible.
✅ The calculator ensures that only valid targets are considered.

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📌 Example Calculation:

🔹 Scenario:

• You bought 3 shares at ₹6 each.
• The stock price has dropped to ₹4.
• You want to lower your average buy price to ₹5.

🔹 Calculation: Required Shares=(6×3)−(5×3)5−4\text{Required Shares} = \frac{(6 \times 3) – (5 \times 3)}{5 – 4}Required Shares=5−4(6×3)−(5×3)​ =18−151=3= \frac{18 – 15}{1} = 3=118−15​=3

✅ You need to buy 3 more shares at ₹4 to reach an average price of ₹5.

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🔥 Why Use This Calculator?

✔️ Quick & accurate calculations for stock averaging
✔️ Prevents invalid targets to avoid incorrect assumptions
✔️ Dark mode UI for easy readability
✔️ Simple & user-friendly interface

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This calculator is perfect for traders who want to make informed decisions before buying more stocks. 🚀📈

Let me know if you need any modifications! 😊