How we worked it out
Updated as you change the numbers.
- Total cost = 100 × $50.00 + 50 × $40.00 + 50 × $35.00.
- Average = total cost ÷ total shares.
Method and assumptions
The average cost is weighted by the number of shares in each purchase, which is how brokers report your cost basis when you use the average method. Commissions can be included by adding them to the price.
Questions
What is the average cost of 100 shares at $50, 50 at $40 and 50 at $35?
$43.75 a share: $8,750 for 200 shares.
Sources
- Investor.gov (SEC): investing basics and glossary
- IRS Publication 550: Investment income and expenses (basis of stock)
Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.