1. What is Cost Per Share?

Cost per share is a financial metric that calculates the average price paid for each share of stock when the total investment amount is divided by the number of shares purchased.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Amount Invested — The sum of money spent to purchase shares (in dollars)
• Number of Shares — The quantity of shares acquired in the investment

Explanation: This calculation helps investors understand their average purchase price per share, which is crucial for evaluating investment performance.

3. Importance of Cost Per Share

Details: Knowing your cost per share is essential for determining your break-even point, calculating capital gains or losses, and making informed decisions about when to buy more shares or sell existing holdings.

4. Using the Calculator

Tips: Enter the total dollar amount invested and the number of shares purchased. Both values must be positive numbers. The calculator will compute the average cost per share.

5. Frequently Asked Questions (FAQ)

Q1: Why is cost per share important?
A: It helps you track your investment performance by comparing your average purchase price to the current market price.

Q2: How does this differ from market price?
A: Market price is what the stock trades for currently, while cost per share is what you actually paid on average.

Q3: Should I include fees in the total amount?
A: Yes, for accurate cost basis calculation, include any commissions or fees paid to acquire the shares.

Q4: What if I bought shares at different prices?
A: This calculator gives you the average cost across all shares purchased in a single transaction or multiple transactions.

Q5: How precise should the calculation be?
A: For stocks, typically 2 decimal places. For cryptocurrencies or fractional shares, you may want more precision.