How is the buy average calculated for Equity?

How is the buy average calculated for Equity?

The Buy Average helps you understand the average price at which you've acquired shares of a particular stock over time. On FYERS, this value is calculated using the FIFO (First In First Out) method, which is also aligned with tax-reporting norms.

What is Buy Average?

Buy Average is the weighted average cost per share based on your executed delivery trades. It helps you track how much you've invested per unit in a specific stock over time—excluding intraday trades.

FYERS uses FIFO to compute Buy Average. FIFO means the shares bought first are considered to be sold first.

How FIFO works – Example

Let’s look at an example from Mr. Mani's FYERS account:

DateSymbolTypeQuantityRate (₹)
12th SeptemberHDFC BankBuy101490
15th SeptemberHDFC BankBuy51380
29th SeptemberHDFC BankSell81540
30th SeptemberHDFC BankBuy101365

On 29th September, Mr. Mani sells 8 shares. Using FIFO, these 8 are adjusted from the earliest buy (i.e., 10 shares bought on 12th September), leaving 2 shares from that lot.

Updated Buy Average:

After the sell transaction, the holdings are:

  • 2 shares @ ₹1490 (from 12th Sept)
  • 5 shares @ ₹1380 (from 15th Sept)
  • 10 shares @ ₹1365 (from 30th Sept)

Buy Average = [(2×1490) + (5×1380) + (10×1365)] / (2 + 5 + 10) = ₹1384

What If...

ScenarioExplanation
I did intraday tradesThese are excluded from Buy Average. Only delivery trades are considered.
I bought and sold shares on the same dayThese are treated as intraday and don’t impact holdings or Buy Average.
I did BTST tradingFIFO applies even to BTST (Buy Today, Sell Tomorrow) transactions.
Use the FYERS Holdings tab to view your current Buy Average. If you notice unexpected changes, check for recent sell transactions or FIFO adjustments.

Last updated: 28 Jun 2025

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