Stock Average Cost Calculator

Formula

To calculate the stock average cost:

\[ SAC = \frac{PA}{SO} \]

Where:

$ SAC $ is the Stock Average Cost ($/share)
$ PA $ is the total purchase amount ($)
$ SO $ is the number of shares owned

What is Stock Average Cost?

The stock average cost is a measure of the average price paid per share of stock. It is calculated by dividing the total purchase amount by the number of shares owned. This metric is useful for investors to understand the average cost basis of their stock holdings.

Example Calculation 1

Let's assume the following values:

Total Purchase Amount $ PA $ = $5000
Number of Shares Owned $ SO $ = 100 shares

Step 1: Divide the total purchase amount by the number of shares:

\[ SAC = \frac{5000}{100} = 50 \]

So, the stock average cost is $50 per share.

Example Calculation 2

Let's assume the following values:

Total Purchase Amount $ PA $ = $12000
Number of Shares Owned $ SO $ = 300 shares

Step 1: Divide the total purchase amount by the number of shares:

\[ SAC = \frac{12000}{300} = 40 \]

So, the stock average cost is $40 per share.