What is average cost?Average Cost
Your average purchase price per share after several buys; it's also your breakeven price.
Learn “average cost” in an animated lesson
- Indexes & ETFsDollar-Cost Averaging into Index Funds
Buy a fixed amount every month: you automatically buy more when prices are low and less when they're high. Compare dollar-cost averaging with a lump sum in different markets.
- Stock BasicsAdding to a Position and Average Cost
If you buy in several rounds at different prices, what did you really pay? Your average cost decides when you break even.
- Stock BasicsPractice: One Complete Trade
Put it all together: watch the market, buy, hold, sell, and see how much you end up making.
Related terms
See how “average cost” works for yourself with an animation you can drag and play.
Go to “Dollar-Cost Averaging into Index Funds”