Average Entry Price Calculator
Know your true break-even when you add to a position. Essential for DCA strategies, scaling in, and managing multiple partial fills.
Weighted average based on lot sizes. Use to calculate your true break-even price when scaling into a position.
Why average entry matters for position management
When you scale into a trade across multiple price levels, your effective entry is the weighted average of all fills. Knowing this number is essential for calculating break-even, setting a rational stop loss, and evaluating whether adding to a position improves or worsens your risk profile.
The weighted average formula
Example: 1 lot at 1.1000 + 1 lot at 1.0950 = (1.1000 + 1.0950) / 2 = 1.0975 average entry. But 2 lots at 1.1000 + 1 lot at 1.0950 = (2.2000 + 1.0950) / 3 = 1.0983 — the size-weighted average shifts toward the larger position.
Scaling in vs averaging down
Scaling into a winning trade (adding as price moves in your favour) improves your average entry and increases exposure to a proven trend. Averaging down (adding to a losing trade) can lower your entry but dramatically increases risk if the move continues against you. Always calculate the new average and corresponding stop loss before adding.