The Average Cost is the average price per share of your currently open positions. This value is used to calculate the unrealized gain or loss on your investments.
It's important to understand that this calculation only takes into account the shares you've bought and isn't affected by partial sales. The average cost will reset only when you completely sell all shares of a specific position, bringing the calculation back to zero.
How is Average Cost calculated in Hapi?
Average cost calculation in Hapi is based solely on buy orders, using a weighted average of the price paid per share acquired.
Example:
Date | Activity | Quantity | Price per share | Total amount | Average Cost |
June 1 | Buy | 3 | $100 | $300 | $100 |
June 10 | Buy | 2 | $110 | $220 | $104 |
June 15 | Partial Sale | -2 | $120 | $240 | $104 (no change) |
June 20 | Buy | 1 | $105 | $105 | $104.17 |
June 25 | Full Sale | -4 | $115 | $460 | $104.17 → $0 |
When making additional purchases, the average cost updates according to the weighted prices.
Partial sales do not affect your current average cost.
Once you sell all shares, the average cost resets to zero.
Total Return
Total return represents your unrealized gain or loss up to the current moment, calculated using the following formula:
Total return=(Market value−Average cost)×Total assets
For example, in this screen:
Market value: $592.92
Average cost: $526.57
Total assets: 1.01105
The total return would be:
(592.92−526.57)×1.01105=60.54
This means you currently have an unrealized gain of $60.54, equivalent to 11.37%.
Important considerations
The average cost is used as a reference for your unrealized gains or losses, not for realized gains or losses.
The calculation does not include commissions or costs related to corporate actions (like stock splits).
If you have additional questions, please reach out to our support team! We’re here to help.