Enter the total amount invested, any fees, and the number of shares into the calculator to determine the cost per share.

Cost Per Share Calculator

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Cost Per Share Formula

The following equation is used to calculate the Cost Per Share.

CPS = (TA + F) / S
  • Where CPS is the cost per share ($/share)
  • TA is the total amount invested ($)
  • F is the total fees ($)
  • #S is the total number of shares

To calculate the cost per share, add any fees to the total amount invested, then divide by the number of shares.

What is a Cost Per Share?

Definition:

Cost per share is the average price paid for each share of stock or security, factoring in the total amount invested along with any brokerage or transaction fees.

How to Calculate Cost Per Share?

Example Problem:

The following example outlines the steps and information needed to calculate the Cost Per Share.

First, determine the total amount invested. In this example, you invest $1,000.

Next, determine the fees incurred. Here, the brokerage fees total $20.

After that, find the number of shares purchased. In this case, 40 shares were bought.

Finally, calculate the cost per share using the formula shown above:

CPS = (TA + F) / #S

CPS = ($1,000 + $20) / 40

CPS = $1,020 / 40

CPS = $25.50/share

FAQ

What factors can affect the cost per share?

The cost per share can be influenced by the amount invested, transaction fees, and the stock’s market price at the time of purchase. Brokerage commissions, market volatility, and timing of the investment can also affect your final cost per share.

How can I reduce my cost per share?

To reduce your cost per share, look for brokerages with lower fees or invest through a fee-free platform if possible. Purchasing shares in larger blocks can help amortize transaction costs across more shares. Additionally, practices such as dollar-cost averaging can smooth out market fluctuations over time.

Is a lower cost per share always better?

A lower cost per share means a smaller outlay for each share, which can be beneficial if the shares appreciate in value later. However, a low cost per share alone does not guarantee a good investment. It’s crucial to evaluate the company’s fundamentals, your investment strategy, and overall market conditions before making any purchase decisions.