How do you figure out your average purchase price in Stocks?

Question

I know what my current average purchase price is for my stocks but I would like to figure out what it would change to if I bought X amount of shares at a lower price. Thanks

Answer 1

Determine your purchase price for the next lot of shares.  Add it to the total you paid for the shares you currently own.  Take that total and divide it by the sum of the shares you currently own plus the number of shares you might purchase.  Divide the sum of the purchase price of what you own plus what you might buy by the number of shares you own plus the number you are thinking of buying.  That will give you your new average purchase price.

However, keep track of what you paid for your shares by each transaction - it will make it easier at tax time if you decide to sell a portion of your holdings.