Enter the total purchase amount ($) and the number of shares owned into the Stock Average Cost Calculator. The calculator will evaluate and display the Stock Average Cost.

## Stock Average Cost Formula

The following formula is used to calculate the Stock Average Cost.

**SAC = PA / #SO**

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

## How to Calculate Stock Average Cost?

The following example problems outline how to calculate Stock Average Cost.

Example Problem #1:

- First, determine the total purchase amount ($). The total purchase amount ($) is given as 8,000.
- Next, determine the number of shares owned. The number of shares owned is provided as 40.
- Finally, calculate the Stock Average Cost using the equation above:

SAC = PA / #SO

The values given above are inserted into the equation below:

SAC = 8000 / 40 = 200 ($/share)

Example Problem #2:** **

The variables needed for this problem are provided below:

total purchase amount ($) = 9000

number of shares owned = 10

Entering these values and solving gives:

SAC = PA / #SO** = 900.00 **($/share)