How to Calculate Weighted Average Price Per Share

by Matt McGew

Investors commonly purchase stocks at different price points. The weighted average price per share is a calculation that shows the average price of a specific stock held within a portfolio that the investor purchased at different price points. This calculation also takes into account varied quantities purchased in addition to the varied price points.

Step 1

Determine the total number of a specific stock held in a portfolio. For example, assume you own 100 shares in a company's stock.

Step 2

Multiply the price points that you purchased the stock at by the number of shares purchased, and add the sums. For example, assume you purchased 25 shares of a stock at $15 per share, 50 shares of the same stock at $20 per share, and another 25 shares at $30 per share. ($15 x 25) + ($20 x 50) + ($30 x 25) = $375 + $1,000 + 750 = $2,125

Step 3

Divide the sum of the individual price points by the total number of shares purchased. Continuing the example from Step 2, $2,125 / 100 = $21.25. This figure represents the weighted average price per share.

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