Average purchase price: Finding the Average Price of Purchased Units
Total purchase cost divided by units gives a simple average acquisition price. It can summarize several purchases if both totals cover the same holdings.
Use the Average purchase price Calculator to enter your own figures and compare the result with the worked example below.
Average purchase price formula
Average price = Total purchase cost ÷ Total units acquired
Worked example
| Item | Example value |
|---|---|
| Total purchase cost | 1000 USD |
| Units acquired | 20 units |
| Average purchase price | 50 USD |
These are illustrative inputs, not current prices, rates or recommended targets. Where a currency is shown, keep all comparable money amounts in the same currency; conversion examples identify the two sides separately.
How to interpret the result
Do not mix the cost of sold units with the quantity still held. A portfolio average may differ from the tax basis of a particular disposal.
Related calculations
Method and further reading
The example follows the FinMathly calculator method. For broader background, see Investor.gov: Introduction to investing. The background resource may use jurisdiction-specific terms; it does not replace the assumptions of this calculator.
Featured photograph: Pexels.